Pipeline shutdown on Forcados cost NNPC, partners $99.8m in one month

The Nigerian National Petroleum Corporation (NNPC) and its other major partners lost over $99.8 million from the temporary shutdown of the Trans-Forcados Pipeline (TFP), the second-largest network in Niger Delta, where more than 90 percent of Nigeria’s crude is explored.

The Trans-Forcados pipeline is a major trunk line in the Forcados Pipeline System used by both international oil companies and indigenous oil firms operating in the western Niger Delta to evacuate crude oil from about 15 producing fields to the Forcados export terminal.

In its latest Federation Account Allocation Committee (FAAC), NNPC said the $99.8 million loss comes from 1,456,500 million barrels of crude oil it could not take to the market due to shut-in of pipelines at Trans-Forcados pipeline.

According to the FAAC report, the state-owned oil corporation listed industrial actions, production curtailment due to leaks, and brief repairs as reasons behind production losses of over 1.4 million barrels based on the May 2021 average Brent price of $68.53 in the Trans-Forcados pipeline.