Indigenous oil operator, Pan Ocean oil says its Amukpe-Escravos pipeline will be ready by September this year. Construction of the pipeline, which has a 160,000 barrels per day capacity began in 2011. The pipeline will serve as an alternative route to the Trans Forcados Pipeline which was largely inoperative due to repair work.
Good news for the oil industry
Having an alternative route leaves the companies less vulnerable to militant attacks on the Forcados terminal, which is the major route for Nigeria’s oil exports. The Forcados terminal has been down for most of last year, due to repair works after repeated militant attacks. The shutdown of the terminal led to oil firms like Seplat incurring losses due to a drop in oil exports and extra costs incurred by moving products using barges. Losses by the oil firms have also impacted Nigerian banks, which had to extend repayment period of loans granted.
Confidence in indigenous construction firms will also be raised, as the project was executed by Fenog Limited, a Nigerian company. The pipeline is also a source of extra income for the company, as it has provision to transport products belonging to other oil companies.
Pan Ocean oil Corporation, was founded in 1973 and provides oil and gas exploration and production facilities in Nigeria. The company is a joint operator of OML 98 in conjunction with the Nigerian National Petroleum Corporation (NNPC). Fenog Nigeria Limited was founded in 1992 is an integrated engineering, procurement and construction company.
