Nigeria May Lose N200Billion In Three Months

By Ikenga Chronicles March 21, 2016

Nigeria May Lose N200Billion In Three Months

The damage by vandals, of the Forcados Export Terminal pipeline could mean that Nigeria would have lost about 25 million barrels of crude oil before its repair is complete.Shell Petroleum Development Corporation (SPDC) is currently working on its repairs.

The Forcados Terminal in Delta State, which is one of Nigeria’s biggest terminals with the capacity to export about 400,000 barrels of oil a day, was supposed to export 250,000 between February and May 2016.Thus, at $40 per barrel of crude oil and 250,000 cut in export, Nigeria will lose $1 billion or about N200 billion revenue between February when the company declared force majeure and May when it is expected to complete repairs on the damaged pipeline. SPDC had declared force majeure on Forcados lifting effective February 21 2016, following the disruption in production caused by the spill on the Forcados Terminal sub-sea crude export pipeline.

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said that the repair of the pipeline could take until May. Forcados is made up of two parts: the tank farm which receives crude oil produced from oil wells in Delta, Ondo, Edo and parts of Bayelsa States, and the crude oil loading platform where ships must come to lift crude.As soon as the incident happened, Shell Joint Venture and third party production into the terminal was suspended as a precautionary measure while the company’s emergency response and oil response teams were activated to manage the incident.
This is, however, depleting the country’s crude oil revenue, which has been plummeting since June 2014.

Source: Today.NG

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