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Nigeria: Shell’s Forcados oil pipeline expected to resume deliveries in September

Thursday, 01 September 2016 10:35

(Ecofin Agency) - Royal Dutch Shell’s Forcados pipeline in Nigeria is expected to recommence shipments in September, according to Kola Karim, the CEO of Shoreline Group.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,” he said.

The Forcados pipeline system is one of the oil facilities attacked by militants this year. In February Shell declare force majeure on the pipeline after militants attacked a line feeding the Forcados terminal, which exports about 200,000 bopd of which Shoreline transports about 52,000 bopd.

The Niger Delta Avengers, which has claimed responsibility for most of the attacks in the region this year, have agreed to a ceasefire. While the Avengers agreed to halt hostilities, other militant groups have appeared and have attacked the Ogor-Oteri pipeline, which is operated by the Nigerian Petroleum Development Co. and Shoreline.

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

The Minister of State for Petroleum, Emmanuel Kachikwu, has said that Nigeria needs to produce 1.5 Mmbopd at most this year as the country produced about 2 Mmbopd last year.

With Forcados, we are likely to regain output at 1.8 Mmbopd and should be able to sustain that till year-end, which is a major boost for government revenue,” Oni added.

Anita Fatunji

 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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