By Onome Amawhe
A new 67-kilometer-long allocation in Nigeria’s Niger Delta region has begun to be announced more than a decade after construction began. The Amukpe Escravos pipeline will have the capacity to transport 160,000 barrels per day (bpd) and will depend on existing infrastructure.
The Niger Delta is ecologically sensitive and where oil infrastructure projects face a number of security challenges. To address those two challenges, the new pipeline was placed between 6 and forty-five meters (147. 64 feet) below the surface. This deep underground facility protects against damage caused by dredging, ecological damage and vandalism.
The assignment was submitted through Pan Ocean Oil Corporation in 2011 to show the company’s commitment to delivering oil to Escravos, with access for connection through oil corporations operating in the western Niger Delta.
“We are very pleased with the good fortune of this project, and we owe it to the many hands that helped carry it out,” said Olajide Ishola, Pan Ocean’s chief operating officer.
The Amukpe Escravos pipeline was built using a horizontal directional drilling technique, which makes it safer for operations and also reduces environmental impact.
“We are pleased that the other people who have invested in this allowance can, regardless, enjoy the culmination of their patience and hard work,” said Ishola. “These types of allocations have long gestation periods, but in the end, investors earn big dividends. “
The pipeline launch is a momentous opportunity for Seplat Energy, a indigenous oil company. When joint venture Pan Ocean and NNPC ran out of budget for the 67-kilometer Choice export pipeline in 2019, Seplat Energy stepped in.
The pipeline, one of 3 projects Pan Ocean/NNPC JV planned to launch in June 2019, was suspended when the Department of Petroleum Resources, DPR, revoked Pan Ocean’s license on OML 98.
The construction of the Amukpe-Escravos pipeline was originally intended to export crude oil from Pan Ocean’s OML 98, but the company’s rights to surface crude oil production were revoked in April 2019. At the same time, the company lost a license to operate at any stage of the Ovade-Ogharefe fuel processing plant.
In a briefing paper posted on the company’s website, Seplat Energy managing director Roger Brown said the Amukpe Escravos pipeline provides “a safer and more reliable export direction that will increase Seplat Energy’s revenues and profitability, enabling us to make a greater contribution to Nigeria’s economy. “economy.
“We applaud the works that have made this imaginable and appreciate the efforts of our partners and all marketers involved in creating this most reliable and safe export direction for Nigerian oil,” Brown added.
The Amukpe Escravos pipeline connects Seplat Energy’s major oil assets from the oil driller’s Amukpe liquids garage terminal to Chevron’s Escravos offshore terminal.
It can ship 160,000 barrels of oil per day, 35,000 of which are through Seplat Energy and state-owned Nigerian Petroleum Development Company Limited in a joint venture.
Seplat had planned for the pipeline to be operational until the end of 2019. The COVID-19 outbreak has hampered progress, delaying the final curfew and first lift until late last year.
The Amukpe pipeline in Escravos will provide a third export option for liquids produced in OML 4, 38 and 41, in addition to the Trans Forcados pipeline formula and backup export from the Warri refinery.
In addition to Seplat Energy, other investors and the Nigerian economy would benefit from this asset as it will ease strain on the 87-kilometer Trans-Forcados (TFP) pipeline, a four-decade-old pipeline system. These corporations come with NPDC, Enageed, Summit, Newcross Petroleum, Continental Oil
The Trans-Forcados pipeline has struggled for the past two decades, with multiple gaps, as the infrastructure has a simple target for teams of criminals and vandals looking to borrow crude oil.
Between February 2016 and early 2017, disruptions to the Trans-Forcados pipeline forced oil manufacturers to block production, leading to economic hardship for the Nigerian government and poor effects for oil companies.
Total deferred oil due to the closure of the Trans-Forcados pipeline through Pan Ocean was only 16. 2 million barrels of oil in 2006-2007 and 2009. Total oil reported due to downtime was 3. 7 million barrels in the period 2016-2017.
“The vulnerability and instability of the Focardos pipeline lends credibility to the project. . . The downtime experienced by corporations lately on the Focardos pipeline is usually very negative for their financial performance,” says Jubril Kareem, acting head of energy studies at Ecobank Transnational. , a pan-African lender.
Mapping deeply buried pipes has the potential to reduce many of the demanding situations faced through pipelines in the past.
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