Crude refinement and new waste management efforts in oil industry

Andre Cho

Still on the oil industry, Petroleum Director, Andre Cho, told News Five earlier this week that there are other developments in respect of petroleum. According to Cho, a BNE affiliated company is refining the crude to produce gas and diesel and there are efforts to keep the wastage of the natural resources at a minimum.  The natural gas that once flowed near the wells is now being used for electricity.  Cho said, however, that neither the amount nor quality of the final product is suitable for bulk sales locally.

Andre Cho, Director of Petroleum

“BNE just commissioned a gas processing plant last year and began processing the natural gas.”

Marion Ali

“So we’re not flaring anymore?”

Andre Cho

“Yeah they’re still flaring the excess but what they are doing now is getting some electric generators that can utilize the gas to produce electricity for their facility for the well heads and that should eliminate the flaring and that’s what we want because that’s energy wasting.”

Marion Ali

“What about the processing of the petroleum itself that comes out?”

Andre Cho

“There’s an affiliated company that has a refinery on the BNE facility.  They purchase oil and refine and produce gasoline and diesel but we don’t administrate downstream operations, which include refining.  The Ministry of Economic Development I think at this time, they administrate them.  I understand some of the diesel and gas is sold locally but we know most of it goes to Guatemala because our technicians are there from time to time to check what’s going on.  But I’ve heard some of it is sold locally, but I’ve heard the quality may not be as good as the diesel and gas we import.”