A Review of the Nigerian Energy Industry

WAGPCo loses $30m revenue in one and half months

16 October 2012, Sweetcrude, LAGOS – THE West African Gas Pipeline Company, WAGPCo, says it has lost about $30 million revenues since August 28 2012, when a sea vessel caused a damage to the company’s pipeline in Lome Port, Togo, paralysing its operations.

The vessel was on the run, trying to escape a shootout between the Navy and a third party vessel when it dragged its anchor across the Anchoring Exclusion Zone, thereby breaking the pipeline.

WAPCo’s Managing Director, Mr. Charles Adeniji, told journalists in Lagos that his company was losing between $500,000 and $600,000 daily as a result of the accident.

He further revealed that the company was also incurring huge costs daily, as repairs are carried out on the pipeline, even as up to 80 per cent of it may be offset by its insurers.

He said, “Since we declared force majeure (a legal clause that absolves the company from the responsibilities of losses suffered by customers), we have lost the opportunity of providing gas transportation services in revenues worth between $500,000 and $600,000 per day”.

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1 comment

  1. Sweetcrude Reports via Facebook Reply

    The revenue loss to the company is regretable. However, we hope that the incident provides the company’s management an opportunity to take a second look at the insurance with a view to providing better coverage against such loss in the future.