Nigeria looses N60b in 3 months to vandalized Forcados, delayed repair

The Nigerian Petroleum Development Company (NPDC) has failed to earn up to N60 billion oil sales revenue in three months due to delay in the repair of the vandalised Forcados crude oil export line, the Nigerian National Petroleum Corporation (NNPC) has said.

The NDPC is the exploration and production subsidiary of the NNPC. The corporation disclosed this in the April 2016 edition of its monthly operations and financial report which was released last week.

It maintained that up till now, the export line, which was vandalised in February with 300,000 barrels per day (bpd) of crude oil production deferred, was still down, three months after.

The Shell Petroleum Development Company of Nigeria Limited (SPDC) had on February 21 2016, declared a force majeure on oil liftings from Forcados following the February 14, 2016 disruption in terminal’s subsea crude export pipeline.

But following from NNPC’s disclosure in its latest publication that NPDC was still unable to earn N20 billion monthly oil income because of the development, in addition to the last two publications for February and March which THISDAY reviewed, it was discovered that NPDC may have cumulatively lost N60 billion within the three months.

In February, NNPC said in the report: “The huge deficit in the month of February 2016 was due to production shut-in occasioned by vandalism of Forcados export line. This situation denied NPDC the opportunity to earn revenue from crude oil sales of about ₦20 billion.”

In March, it stated: “Following the recent declaration of force majeure by SPDC due to vandalisation of 48 inch Forcados export line resulted in production shut-in of about 300,000bpd. This adversely impacted on nation’s February 2016 production leading to a loss of about N20 billion of NPDC oil revenue.”
And in April, it explained: “NPDC’s crude sale for the month is still hampered by Forcados pipeline vandalism which continued to deny NPDC of monthly crude oil revenue of about ₦20 billion.”