Shell To Restart Forcados Oil Pipeline In September | Independent Newspapers Limited
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Shell To Restart Forcados Oil Pipeline In September

Shell, Royal Dutch Shell’s Forcados pipeline in Nigeria
Posted: Sep 1, 2016 at 6:20 am   /   by   /   comments (0)

There is an indication that Royal Dutch Shell’s Forcados pipeline in Nigeria would resume deliveries in September.

Chief executive Officer of Shoreline Group, one of the oil companies that use the pipeline to export crude, Dr. Kola Karim, said: “We are hearing Forcados is due to return at the middle of next month. It has been a tough situation for us these past couple of months.”

The Forcados pipeline system is among oil infrastructure targeted by Nigerian militants this year. In February, Shell declared force majeure – legal clause that allows it to stop shipments without breaching contracts – after militants blew up a line feeding the Forcados terminal, which typically exports about 200,000 bopd.

Karim said that Shoreline, which produces about 52,000 bopd, was still trying to pinpoint the location and assess the damage from Tuesday’s attack in Delta state.

While the Niger Delta Avengers, which claimed most attacks in Nigeria’s oil heartland this year, have called a halt to hostilities, other militant groups have emerged.

The Niger Delta Greenland Justice Mandate, or NDGJM, claimed an assault this week on the Ogor-Oteri pipeline, which is run by Nigerian Petroleum Development Co. and Shoreline and was already halted following a previous attack on Forcados.

“It’s key to note that there are other groups now trying to assert themselves,” Dolapo Oni, the Lagos-based head of Ecobank Energy Research, said. “Nevertheless, it shouldn’t prevent the September opening.”

Oni said: “With Forcados, we are likely to regain output at 1.8 MMbopd and should be able to sustain that til year-end, which is a major boost for government revenue.”

The Minister of State for Petroleum, Dr. Emmanuel Kachukwu, stated that Nigeria, which produced about two MMbopd last year, expected to pump 1.5 million barrel of oil per day (MMbopd) “at best” this year.


Charles Okonji, Lagos