Five months after it was attacked and shut down, Shell’s Forcados export line remains offline, causing the country a loss of about $1.6bn (N356.6bn) in revenue.

 It is still uncertain when the pipeline would come back on stream, although the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had said earlier this month that repairs would be completed by the end of July.

In February 21, Shell declared force majeure – a legal clause that allows it to stop shipments without breaching contracts – a week after militants blew up a pipeline feeding the Forcados export terminal, knocking out at least 250,000 barrels per day.



 The International Energy Agency had in April estimated that Nigeria could lose an estimated $1bn (N197bn) in revenue by May, when repairs of the Forcados terminal was expected to be completed.

The IEA said, “The Forcados terminal in Delta State, one of Nigeria’s biggest terminals, was scheduled to load 250,000 barrels of crude per day. At $40 per barrel, Nigeria could stand to lose an estimated $1bn between February, when force majeure was declared, and May, when repairs are expected to be completed.”

 At an average oil price of $40 and exchange rate of N197 to the dollar, the country lost at least N246.4bn as of June 19 and N110.2bn from June 20 to July 27 (using $290/$).

 The Nigerian National Petroleum Corporation had said the deficit and low revenue recorded by its exploration and production subsidiary, Nigerian Petroleum Development Company, from February to April, was due to production shut-in, resulting in loss of entire NPDC’s revenue from crude oil sales of about N20bn occasioned by vandalism of Forcados export line.

The corporation said recent upsurge in vandalism had negatively impacted on the Nigerian crude oil production output, losing its African top crude oil producer to Angola.

 It said, “About 380,000barrels per day remained shut in due to vandalism of the 48-inch subsea export line on February 15, 2016.

 “Also, the nation has lost over 1,500MW of power supply to the damage as gas supply from Forcados, which is Nigeria’s major artery, accounts for 40 to 50 per cent of gas production. Incessant pipeline vandalism poses the greatest threat to the industry.”

  Nigeria’s oil production is now 700,000 bpd lower as a result of persistent militant attacks on oil pipelines and infrastructure, Reuters reported, quoting the NNPC.

 In addition to Forcados, Qua Iboe and Brass River are also under force majeure, while Escravos and Bonny Light are facing significant loading delays.

 The militant group, Niger Delta Avengers, has claimed most of the strikes, which continued even during a one-month ceasefire announced by the government in late June. Other groups have also claimed attacks.

 The groups have primarily targeted pipelines belonging to oil majors Shell, ENI and Chevron, NNPC itself, and Nigerian company Aiteo.

   “As one terminal comes back online, another goes offline,” analysts at Barclays wrote in a note, adding that “with militants wanting a greater share of the country’s oil wealth, outages are likely to prevail until any agreement can be made.”

This month, Shell shut the Trans Niger pipeline, which is one of the pipelines that carry crude to the Bonny light export terminal, following a leak in Ogoniland.

 While crude export was briefly reduced to 30-year low at the peak of the attack, Nigeria’s export has recovered sharply.

 Analysts at Ecobank Capital, led by Mr. Dolapo Oni, in a report said, “However, indigenous operators in the country are expected to be significantly affected by the shutdowns. Most of the country’s indigenous producers operate onshore fields which require the loading terminals for export.

 “The local producers could see 2016 financial performance worsen considerably due to the security challenges of the region.”

http://www.politicalcritics.com.ng/index.php/2016/07/28/nigeria-loses-n356-6bn-five-months-forcados-shutdown/

God help this country...

duduade:
God help this country...

Amen

Buhari brought all these on himself, it's just a pity we the masses are the one suffering for it... He Buhari doesnt bare 0.0001% hardship his administration has plaunged Nigerians to.. Even tho the Prev adminidtration is no saint but the fact is we didn't have it this Bad(Very Bad)... Even common Garri that used to be d food of the masses has gotten to the level that some can't even afford it, not to talk of the likes of Kerosine & others.... May God save us

sai baba. PMB till 2027.

FagsamPHP:
Buhari brought all these on himself, it's just a pity we the masses are the one suffering for it... He Buhari doesnt bare 0.0001% hardship his administration has plaunged Nigerians to.. Even tho the Prev adminidtration is no saint but the fact is we didn't have it this Bad(Very Bad)... Even common Garri that used to be d food of the masses has gotten to the level that some can't even afford it, not to talk of the likes of Kerosine & others.... May God save us

How did Buhari bring this upon him self please??
Tell me

Nigeria is losing money and some are jubilating. their state allocations are dwindling, there's no money for capital projects yet they are happy. you think you are doing buhari? you are doing yourself we are in this together

FagsamPHP:
Buhari brought all these on himself, it's just a pity we the masses are the one suffering for it... He Buhari doesnt bare 0.0001% hardship his administration has plaunged Nigerians to.. Even tho the Prev adminidtration is no saint but the fact is we didn't have it this Bad(Very Bad)... Even common Garri that used to be d food of the masses has gotten to the level that some can't even afford it, not to talk of the likes of Kerosine & others.... May God save us

how exactly did buhari bring this upon himself? don't even come with that 5% bullshit. let the militants keep blowing up pipelines. the common man will suffer for it. Buhari will still eat 3 square meals, he'll fly private jet and enjoy 24hrs electricity with standby generators all around aso rock. violence is never the better way

You never see anything

This is actually a good thing in diguise, because it will force the F.G to look at alternative means of generating foriegn exchange.

The mono product economy this country has been running and over reliance on the oil from the south south is not the best.

Jaideyone:
how exactly did buhari bring this upon himself? don't even come with that 5% bullshit. let the militants keep blowing up pipelines. the common man will suffer for it. Buhari will still eat 3 square meals, he'll fly private jet and enjoy 24hrs electricity with standby generators all around aso rock. violence is never the better way

Ok. You will learn the hard way. Some of us don't believe in noise making. You have four options before you; join the NA and come fight for the depraved Nigerian government or lend your voice to the popular call for the restructuring of the present lopsided contraption. The other two options are run away from Nigeria so we have one less minion to worry about or else remain in Nigeria and see how abject poverty will ravage you and your likes who see nothing wrong with the present evil system in Nigeria. God will make a way for us for he knows we are fighting for our future.

When yoruba rants online u will believe they are feeding us.. But its d other way round. I am expecting another 2 weeks ban ..una fada

duduade:
God help this country...

God will not help Nigeria unless u Nigerians help yourself. God is not a magician,other nations that doesn't pray to God are getting it right and God is helping them,the more Nigerians rely on these prayers instead of identifying the problem and finding lasting solution the more agony pain and sufferings they inflict on themselves. So stop all these religious fanatical prayers and start looking for a way forward

Yujin:

Ok. You will learn the hard way. Some of us don't believe in noise making. You have four options before you; join the NA and come fight for the depraved Nigerian government or lend your voice to the popular call for the restructuring of the present lopsided contraption. The other two options are run away from Nigeria so we have one less minion to worry about or else remain in Nigeria and see how abject poverty will ravage you and your likes who see nothing wrong with the present evil system in Nigeria. God will make a way for us for he knows we are fighting for our future.

blah blah blah everyone against the ideology of NDA doesn't have to resign and leave their career just to fight NDA. I'm in the public health/pharmaceutical industry and that's my career part. I don't have to abandon a career I started as far back as 2005 just to fight NDA that started in 2016. If you have to quote me pls argue intelligently and stop foaming in the mouth beating round the bush.
NDA is not strong enough to kick buhari out of power. this is Africa where leaders fail to deliver and they still refuse to resign until their tenure ends.
now put on your thinking cap and see the victims of NDA madness. yes NDA can blow up pipelines and cripple the economy. Buhari can also sit tight and pay salaries alone without capital projects. the roads will go bad, pot holes will be all over the place. people will die of accident and go hungry but buhari won't go hungry. buhari can fly choppers every single day till 2019.
so who's at the receiving end of this NDA madness? remember to argue intelligently

5% starving 97%.

Such a disappointment. That money could have saved and changed so many lives.

good. buari dullard should forget about niger delta oyel. let him use groundnut oyel to fund his budget.

[size=13pt]Those making mockery of Nigeria, over the current economy challenges need their phones or any other internet related devices taken away from them, until they are matured enough to contribute positively to an issue like this. No one is left out of these challenges and I believe majority of them and making mockery on an empty stomach... This is a case similar to a deceit, sitting on his own testis, with a severe pain, and still pretends all is well with him... We shall see the end... never pray for a bad end[/size].

doublewisdom:
5% starving 97%.

d dullard who said we 5% ar inconsequential should be ready to face to consequencies of his bigotry. no single drop of niger delta oyel will be used to fund his budget.

Jaideyone:
how exactly did buhari bring this upon himself? don't even come with that 5% bullshit. let the militants keep blowing up pipelines. the common man will suffer for it. Buhari will still eat 3 square meals, he'll fly private jet and enjoy 24hrs electricity with standby generators all around aso rock. violence is never the better way

unsolicited adviser

The militants activities are affecting everybody

When will you guys come to term with reality

rapistomenka:



unsolicited adviser

The militants activities are affecting everybody

When will you guys come to term with reality

what is this one saying? even if the economy is in recession buhari will still fly private get and get 1b for food. who is suffering? the poor man on the streets!!!

I am praying we should loss more

Because of this oil Nigerians are not thinking except oil money

God please dry the entire oil of Nigeria so we can think properly

Jaideyone:
blah blah blah everyone against the ideology of NDA doesn't have to resign and leave their career just to fight NDA. I'm in the public health/pharmaceutical industry and that's my career part. I don't have to abandon a career I started as far back as 2005 just to fight NDA that started in 2016. If you have to quote me pls argue intelligently and stop foaming in the mouth beating round the bush.
NDA is not strong enough to kick buhari out of power. this is Africa where leaders fail to deliver and they still refuse to resign until their tenure ends.
now put on your thinking cap and see the victims of NDA madness. yes NDA can blow up pipelines and cripple the economy. Buhari can also sit tight and pay salaries alone without capital projects. the roads will go bad, pot holes will be all over the place. people will die of accident and go hungry but buhari won't go hungry. buhari can fly choppers every single day till 2019.
so who's at the receiving end of this NDA madness? remember to argue intelligently

You are the one seriously foaming in the mouth so please save us the stench emanating from your maggot-infested mouth

Jaideyone:
what is this one saying? even if the economy is in recession buhari will still fly private get and get 1b for food. who is suffering? the poor man on the streets!!!

And he will then go down as the worst president ever. You think he's happy that the economy is in such a sorry state

rapistomenka:



And he will then go down as the worst president ever. You think he's happy that the economy is in such a sorry state

lol unfortunately for you there is no official way to label someone as the worst president ever. it's a matter that dwells more on sentiments. people will always have opposing views. so even if buhari turns Nigeria to newyork someone people will still hate him and call him the worst ever but if he ruins this country completely some will still say he's the best president ever!!! even abacha has his own praise singers. so please tell me other ways the recession will affect buhari apart from "being the worst president ever"

rapistomenka:



You are the one seriously foaming in the mouth so please save us the stench emanating from your maggot-infested mouth

I made points and you are yet to tell me how the bad economy will make buhari go hungry and starve. counter my points or get the Bleep out of my mentions

Jaideyone:
Nigeria is losing money and some are jubilating. their state allocations are dwindling, there's no money for capital projects yet they are happy. you think you are doing buhari? you are doing yourself we are in this together

see dz one, instead of buhari to give dat 95percent wetin n get for mind so dat only 5percent go suffer, all of us go go down together.
simple

Nigeria looses 356.6billion while the yet to be formed Niger Delta repuplic retains her 356.6billion. This money would be used to turn Delta state where the money comes from into el dorado

[s]

Bolustic:
Let them blow up, it's their problem, that was how Boko Haram started and the people egged them on only for it to turn back on the same people.

By The time NDA is through in the SS, the IDP camps there would be much more than those in the North East.

t[/s]


Afonja trash!

madenigga:
see dz one, instead of buhari to give dat 95percent wetin n get for mind so dat only 5percent go suffer, all of us go go down together.
simple

all of us? even if Nigeria produces just 200,000 barrels of oil daily buhari won't suffer. I'm sure NDA can never achieve that level of success. I'm in the private sector but you and I will suffer but buhari won't feel the effect.