The Nigerian National Petroleum Corporation (NNPC) Limited has secured a maintenance agreement with WAGL Energy for a major Nigeria’s crude oil terminal located in Delta State.
This is contained in a statement issued by the management of NNPC on Wednesday through its official X handle.
According to the statement, the Nigerian Pipelines and Storage Company Limited (NPSC), a downstream subsidiary of NNPC signed an agreement with WAGL for the provision of Operation and Maintenance (O and M) Services to the Escravos Crude Oil Terminal Facility.
It also noted that the collaboration aims to enhance the operational efficiency and reliability of the terminal, ensuring sustained crude oil production and export.
“Earlier today at the NNPC Towers, Abuja, the Nigerian Pipelines and Storage Company Limited (NPSC), a downstream subsidiary of the NNPC Ltd. Has signed an agreement with WAGL Energy Limited for the provision of Operation and Maintenance (O and M) Services to the Escravos Crude Oil Terminal Facility,” the statement read.
Why this deal matters
The Escravos crude oil terminal is one of Nigeria’s 31 crude oil terminals, alongside Bonny, Brass, Qua Iboe, Forcados, Odudu (Amenam Blend), and Tulja-Okwuibome.
The active terminals are responsible for the production of crude oil, blended condensates, and unblended condensates for exportation.
These facilities position Nigeria as a leading global crude oil exporter, generating significant foreign exchange and driving economic growth in the country.
Accordingly, maintaining these facilities helps to increase crude oil production in the country, attract investment capital, and mitigate energy theft.
As of May 2024, the Escravos crude oil terminal has a crude oil and condensates production to 4,204,614.
The terminal which is in the Warri South local government area of Delta state is operated by Chevron Nigeria.
About WAGL Energy
West African Gas was incorporated in March 2013 as a joint venture company. It was formed by the Nigerian National Petroleum Corporation LNG Ltd, a wholly-owned subsidiary of the Nigerian National Petroleum Corporation (NNPC), and Ocean Bed Trading Ltd, an established oil and gas trading company.
The primary purpose of the company is to serve as a vehicle for the offtake, marketing, and trading of NLNG NGLs under the equity lifting scheme.
This strategic focus allows the company to efficiently manage and market natural gas liquids.West African Gas leverages the long-term NGLs trading experience and expertise of its joint venture partners, particularly Ocean Bed Trading Ltd.
The combined knowledge and capabilities of these partners position the company as a strong player in the industry.
Focusing on trading NGLs, the company seeks to maximize value from the market while leveraging its vast resource base. This approach ensures that West African Gas can effectively meet market demands and generate significant returns.
