Nigeria wants Shell to open major pipeline but attack feared
Johannesburg - Nigeria wants Royal Dutch Shell to reopen one of its main pipelines but the oil multinational is resisting, analysts say, for fear it could once again be bombed by militants.
The Trans Forcados Pipeline, the main feed to the 400 000-barrel-a-day Forcados export terminal, has been shut for all but three weeks of the past year, Lagos-based SBM Intelligence said in its weekly risk analysis published Friday.
In their most sophisticated attack, militants used divers to blow up an underwater section of the pipeline in the Atlantic a year ago. Defying militant death threats, Shell flew in underwater engineers who took seven months to get the pipeline operational.
Two days later, the militants bombed it again.
Shell Nigeria lost $3bn during the seven months of repairs, Africa Confidential newsletter estimated at the time.
"Nigeria wants Royal Dutch Shell to reopen a major export pipeline in the Niger Delta but the oil major wants better protection first, to avoid having it blown up yet again," SBM Intelligence said, quoting unidentified officials and industry sources.
Lowest rate of production
Shell Nigeria said only that one of its priorities is to secure the pipeline, while indicating it is still working to contain leaks. "Our focus on the Forcados leaks is on containment, spill recovery and securing the line," spokesman Precious Okolobo told The Associated Press on Saturday.
Petroleum Minister Ibe Kachikwu announced last month that Nigeria, one of Africa's top oil producers, lost between $50bn and $100bn in oil revenues because of militant attacks last year. At the worst point, he said, production was cut to 1.2 million barrels a day — a loss of 1 million barrels a day and the lowest rate of production in 30 years.
The Forcados terminal handles nearly one-quarter of Nigeria's exports. So experts are puzzled by the state oil company's declaration this week that production has risen to 2.1 million barrels a day — near optimal production of 2.2 million.
"Nigeria has given differing figures for its oil output in recent weeks ... without giving an explanation," said SBM Intelligence, quoting figures between 1.7 million to 2.2 million barrels a day.
With Nigeria confronting its worst recession in 25 years, "We certainly hope the figures are true," the analysts said.
Oil militants say careless production in the southern Niger Delta has brought nothing but misery, with pollution from oil spills destroying farmlands, fishing grounds and millions of livelihoods.
Fear of more attacks
At one point, all three of Nigeria's biggest export terminals were closed for repairs from militant attacks: Forcados, ExxonMobil's Qua Iboe and Eni's Brass River. Qua Iboe, the biggest terminal, was shut for more than three months before quietly resuming exports in October. It is not clear if Brass River is operating. Oil companies are reluctant to divulge information for fear of more attacks.
There has been no major attack since an August cease-fire to allow negotiations between the government, representatives of militants, community leaders and oil companies operating in the Niger Delta.
Community leaders have expressed confidence in Vice President Yemi Osinbajo's visits and promises of a comprehensive plan to help residents benefit from oil production.
Low oil production and international prices for the petroleum that provides 80 percent of government revenue have brought on a recession in Nigeria compounded by a massive foreign currency shortage.
Nigeria lost its place as Africa's biggest oil producer last year, to Angola.

http://m.news24.com/news24/Africa/News/nigeria-wants-shell-to-open-major-pipeline-but-attack-feared-20170304

I don't think that a good idea.
FTC

the poster above me I wonder why its not good idea. For Niger Delta people it would take grace to convince investor to move to your region because of what your most cherish fighters did.

Lack of good record keeping is more dangerous than corruption. How can we be producing 2.1m barrel a day when forcados is shut down. Who is bringing the 400k barrels?

Let them allow osibanjo to work

off topic but in topic pun

teacher : say something about someone you hate
student: the forcados not brush his teeth

Apc govt & lies are like bread & butter.

Lol

They didn't overtake us, ours only reduced due to militancy.

hucienda:
Angola has since taken over as Africa's No. 1 Producer.

The government in Luanda must be doing a good job on the business front.

Open it we are now happy with our New President......

Nigeria is powerless without oil

Shell and others can go ahead with production in FULL Nameplate capacity.
We now have a listening President that works his talk.
And he's God-fearing too.

SS and SE will GIVE him some time to show his goodwill