The Nation Newspaper

Tag: Forcados

  • ‘Forcados, Escravos pipeline damage reduced power by 3,132Mw’

    Vice President Yemi Osinbajo yesterday said the damage of Shell’s Forcados export terminal pipeline and  vandalism of the Lagos Escravos pipeline in February, resulted in the shortage of 3,132 megawatts (Mw) of electricity.

    He spoke at the 9th international conference of Nigeria Association of Energy Economics/International Association of Energy Economists (NAEE/IAEE), in Abuja, with Energising Emerging Economies: Role of Natural Gas and Renewable Energy Resources as its theme.

    The vice president said the damaged  pipelines have cut gas supply to power plants in the Western Axis such as Egbin, Omotosho 1, Olorinsogo 1, Ughelli, Omotosho NIPP and Olorunsogo NIPP leading to 3,132Mw being constrained.

    Represented by his Special Assistant on Renewable Energy, Chiedu Ugbo, Osinbajo noted said although Nigeria is described as more of a gas than an oil territory, data from the System Operator (SO) shows that the average energy generated and sent out for distribution to end users in the past week was less than 4,000Mw due largely to gas constraints.

    He said currently the country has over 12,500Mw of installed electricity generation capacity with about 7,000Mw of that ready to generate if required gas is available.

    Underscoring the need for investment in the sector, he said the challenges faced in the sector is as a result of many years of underinvestment in gas gathering and processing for domestic consumption, in addition to many years of gas flaring.

    He said: “Nigeria alone flares about half of 40 billion cubic meters of associated gas estimated to be flared in Africa annually.”

    To reverse the trend, he said the administration plans investment in alternative energy to energise and power Nigeria’s economy for economic growth and development.

    Speaking earlier, President of NAEE, Prof. Wumi Iledare, said it is foolhardy to perpetually develop oil and gas resources primarily for cash or revenue rather than use the resources to energise the economy.

    He pointed out that the current institutional governance structure of the petroleum sector is weak and confusing. He said policy, regulatory and commercial institutions are currently indistinguishable while the delineation of institutional roles remains elusive.

     

  • Force Majeure on Nigeria’s Forcados lifts market

    Supply outage from the Shell Petroleum Development Company Limited (SPDC) joint venture in the Forcados facility has positively affected the price of crude oil in the international market, it was learnt.

    Shell declared force majeure on oil liftings from the Forcados export terminal in Delta State owing to a leaking pipe, which resulted in shut-in of about 400,000 barrels of oil per day.

    The 48-inch diameter export pipeline, shut last month and planned to be reopened in April, is one of Nigeria’s biggest pipelines.

    The Organisation of Petroleum Exporting Countries (OPEC) in its  Oil Market Report for this month, said the force majeure and outages around the Mediterranean and Turkey have helped to boost the market.

    It said: “Outages around the Mediterranean, with Turkey’s Ceyhan pipeline down, and in West Africa, with force majeure imposed on shipments of Nigeria’s Forcados until April, have helped boost North Sea prompt prices. Supply distribution in the North Sea itself has also helped.”

    The report also noted that after three months of sharp declines, crude oil futures recovered amid numerous positive factors that ignited speculations that oil markets would soon be balanced. This suggested that the 20-month sell-off could be hitting bottom, it added.

    While other grades were gaining, the United States’West Texas Intermediate (WTI), was impacted by crude stock-builds in the United States.

    Also what eased out sharp deterioration of the market recently, according to the report, is a proposal for a production freeze at January’s level by major oil exporters, and more news about an additional oil producer meeting in March, as well as further layoffs by service companies and related reports about a complete halt of fracking activities by some companies, all lent support to the market.

    Market sentiment was also helped by an eighth-straight weekly drop in the number of US rigs drilling for oil, project deferments in the US shale industry and job cuts that will slow production.

    Crude oil futures also rose after the US Energy Information Administration (EIA) estimated US crude production will decline this year and next, helping the market rebalance gradually. The EIA said utilities withdrew 48 billion cubic feet (bcf) of gas from storage during the week ending 29 January. This was above the market expectation of a 40 bcf decrease; however it was significantly lower than the previous five-year average of 137 bcf for that week. Total working gas in storage stood at 2,536 bcf, or 45.6 per cent higher than at the same time the previous year and 35.6 per cent higher than the previous five-year average.

    Also disruptions to crude supplies in Europe and higher equity prices on Wall Street on the back of positive US economic data also supported oil. Crude futures also drew support from China’s move to boost its slowing economy, injecting an estimated $100 billion worth of long-term cash into the economy to cushion the pain from job layoffs and bankruptcies in industries plagued by overcapacity, the report said.

  • Forcados spill threatens Delta, Bayelsa communities

    Scores of coastal communities in Delta and Bayelsa states  face a grim prospect following the spill from the crude loading platform of Shell Petroleum Development Company (SPDC) in Forcados on February 14.

      Oil industry sources said up to 35,000 barrels of crude might have spilled into the environment from the ruptured pipeline. A militant group said it sabotaged the pipeline.

    The spill is reported to be one of the worst in the area  second only to the December 2011 Bonga Spill, which is estimated at 42,000 barrels.

    Regulatory sources said the volume qualifies it as ‘major’, which a  Section of Oil Spill Recovery, Cleanup, Remediation and Damage Assessment listed as a spill of 2,500 and above.

    A source at the Forcados Terminal said: “They were loading a vessel when the incident occurred and that is why so much crude oil was spilled. It was only when a call came that nothing was reaching the vessel that they stopped pumping.

    “At that time several thousands of barrel had spilled into the environment.”

    SPDC, supported by professional bodies, tried to contain the spill and prevent it from spreading.

    Yet, sources and photographs showed massive devastation, dead fauna and other sea and river creatures, a development that threatens economic activities in the area.

    “The creeks and rivers in Ogulagha, Odimodi, Isiayegbene (South Point), Okuntu in Delta and as far as to Agge and other communities in Ekeremor in Bayelsa are affected by the spill. The pollution touched several communities and it is affecting sources of livelihood,” an environment activist told our reporter.

    Minister of Environment Ms Amina J Muhammed, in a statement on her Twitter handle, described the oil spill at Forcados, as “a tragic reminder of the urgency to right the wrongs on the people and planet in the Niger Delta.”

    Worried by the plight of dozens of women she met at Isiayegbene on Friday, the minister directed the National Oil Spill Detection and Remediation Agency (NOSDRA) and SPDC to assess the spill effects also in the creeks.

    It was gathered that NOSDRA had concluded a JIV (Joint Investigation Visit) to assess the cause of the spill before the minister gave the directive.

    The initial exercise was rejected by Odimodi community, which accused NOSDRA and Shell of neglecting them.

    Chairman of Odimodi Community Mr Ezekiel Ikporukpo told our reporter on telephone that the fresh assessment was carried out on Saturday, in obedience of the minister’s directive.

    “I did not go with them, but the people are in the creeks; they are doing what the minister directed. We are pleased with the minister because, but for her directive, this would have been swept under the carpet,” Ikporukpo told our reporter on telephone.

    The Environment minister called for patience, advising yhat the cause (is) still under investigation by government experts and Shell.”

    She promised: “We will share (JIV report) once ascertained.”

    Nevertheless, feelers from communities showed that the locals were uncomfortable with the militant group, Niger Delta Avengers’ claim of responsibility.

    Mr Osteen Igbapike, lawyer representing Odimodi and other communities, lamented the perceived nonchalance of NOSDRA – which he accused of being tied “to the apron of SHELL.”

    He said although the agency was set up to protect the environment and oil communities, “Shell has always used NOSDRA to shortchange communities. NOSDRA ought to be the environmental police, but it is being policed by the oil firms.

    “In this spill, the polluter took it on a guided tour and they went where the company wants them to go.”

    The lawyer faulted the militant’s claim of responsibility, stressing: “I am not aware of this, but it sounds typical of the corporate lies told by SPDC when a spill occurs. It does it to escape responsibility.

    “The pipelines are old and this spill is not the first. Considering the age of the facility, from 2012 till date we have had at least four incidents: on 3/1/12, 3/9/13, 5/10/10 and 6/11/13.”

  • SPDC tackles Forcados spill

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) at the weekend intensified recovery of oil from the February 14, 2016, spill at the Forcados Terminal export pipeline. Supported by industry group, Clean Nigeria Associates (CNA), and other oil companies, SPDC has deployed specialised equipment to contain the spill. SPDC has also mobilised clean-up teams and contracted a specialised aircraft to join in the response. Production into the terminal and crude oil exports were stopped soon after the spill was discovered.

     Diving teams, which inspected the 48-inch diameter export pipeline, reported extensive damage consistent with the application of external force. Following this incident, the SPDC Joint Venture is working with relevant government agencies to review the security situation around its critical assets in the Niger Delta.

     General Manager of  SPDC’s External Relations Igo Weli said: “This incident is regrettable but our response is comprehensive including multiple flights over the affected area to monitor the impact and deployment of clean-up experts from within and outside Nigeria. Oil recovery will continue while we finalise repair plans pending the conclusion of the Joint Investigation Visit (JIV) process. We appreciate the support of the communities, regulators and security agencies taking part in the investigation.”

  • SPDC battling to contain Forcados oil spill

    SPDC battling to contain Forcados oil spill

    The management of Shell Petroleum Development Company (SPDC) yesterday continued the battle to contain a spill from its ruptured pipeline in Forcados, Delta State.

    It was gathered that the affected pipeline is the Forcados Terminal Crude Loading Platform (CLP) supply line, which is located on the high sea off the coast of Forcados in Burutu Local Government Area.

    A source said as much as 35,000 barrels of oil might have spilled into the sea and washed into adjoining rivers and creeks. “A vessel was being loaded the night the spill occurred. Those at the control room did not know that there was a spill and they continued to pump until personnel at CLP called to find out why oil was not being pumped into the vessel,” he said.

    The incident has halted production from SPDC’s facilities serviced by the export line and those of third parties.

    The cause of the spill was yet to be ascertained as at press time but a hitherto unknown militant group, Niger Delta Avengers, has claimed responsibility.

    In a statement on its facebook page, the group said it was the beginning of another oil war in the region. But the claim cannot be independently verified until the outcome of a Joint Investigation Visit (JIV) is known.

    SPDC’s spokesperson, Mr. Precious Okolobo, responsing to inquiries about meeting with host communities, said on Tuesday evening: “SPDC will continue to engage communities on the spill at Forcados Terminal. By industry regulations, a JIV (Joint Investigation Visit) comprises of regulatory and security agencies, communities and the operators.”

    Okolobo said SPDC had activated its Emergency Response and Oil Response teams to manage the incident, while booms and other oil containment resources are being deployed to stop the spread.

    He noted that the Anglo Dutch firm had requested the support of Clean Nigeria Associates (CNA) for a comprehensive response to the spill and relevant authorities, including security agencies, have been informed as a requisite for a joint investigation visit which will determine the cause and volume of oil spilled.

    When The Nation visited Isiayegbene yesterday, efforts were on to contain the spill. “We are putting booms at strategic places, as you can see, to prevent the oil from spreading to other places. This is the containment that we are doing for now,” a worker on site said.

    Meanwhile, communities in the area are bracing for the landfall of the spill, which has already hit nearby Okuntu, leaving in its wake dead fishes.

    It was gathered that the community leaders have disputed that the spill resulted from the activities of militants, despite claims by Niger Delta Avengers, probably to pressure SPDC to pay them compensation.

    “We don’t believe any claim because this is a massive spill and we cannot allow SPDC and the Federal Government to escape responsibility.”

  • Woman, 38, attacked by ‘shark’ in Forcados River

    IT was narrow escape for 33-year-old Mrs. Torugbene-ere Aboh. But for Providence, she would have been attacked by a Shark in Forcados River where she was having her bath in Burutu Local Government Area of Delta State.

    She was said to have gone for a three-day religious programme at the Holy Zion Church, Oboro and decided to have her bath at the Focardos River when she escaped the attack.

    Narrating the ordeal to reporters, Mrs. Aboh said she had a deep cut on her right leg shortly after entering the river.

    According to her, she screamed for help and that she was saved by the quick intervention of brethren who pulled her out of the water.

    She was rushed to a nearby a patent medicine store at the Oboro community for first aid before she was taken by her husband, Mr. Patrick Aboh to a private clinic at Bomadi for further treatment.

    Mr Aboh told reporters that her wife, the mother of five was lying critically ill due to the attack, which she blamed on the ravaging floods.

    A community leader in Bomadi, Chief Godspower Oporomo, warned residents against going near the fast flowing current of the Forcados River.

    He specifically cautioned parents and guardians to keep an eye on the children.