A Review of the Nigerian Energy Industry

Mart Resources, partners lose 73,000 barrels on Agip pipeline

23 June 2015, Lagos – Mart Resources and its co-venturers – Midwestern Oil & Gas Company Limited and SunTrust Oil Company Limited have provided updates on Umusadege field production for May 2015, where the partners lost 73, 040 barrels of oil equivalent per day (bopd) on the Umugini pipeline and the Nigerian Agip Oil Company (NAOC) pipeline.

AgipAccording to the update released at the weekend, the combined net delivery of oil from the Umusadege field through the Umugini pipeline and the NAOC export pipeline was approximately 521,320 barrels in May 2015 before estimated combined pipeline and export facility losses.

However, the production figures dropped to 448,280 barrels after deduction of combined pipeline and export facility losses as estimated by Mart.
Highlights of the update showed that Umusadege field production averaged approximately 17,170 bopd during May 2015 based on calendar days and 20, 250 bopd based on production days.

Total production from the Umusadege field in May 2015 was approximately 532,340 barrels of oil, with 4.7 days as the aggregate calculated downtime.

The partners noted that there were shutdowns of theTrans Forcados export pipeline during May 2015 due to operational interruptions for general pipeline maintenance and repairs due to vandalism.

However, ongoing production from the Umusadege field was managed by the ability of the field operator to alternate production between the Trans Forcados and NAOC export pipelines.

Total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for May 2015 were approximately 280,340 barrels before pipeline losses.

Based upon the 12-month rolling average rate of pipeline and export facility losses from December 2013 to November 2014 of 17.46 per cent, Mart estimated that the NAOC export pipeline and Brass River export facility losses for May 2015 would be approximately 48,940 barrels.

Accordingly, Mart also estimated that the total net crude deliveries into the NAOC export pipeline from the Umusadege field for May2015 less estimated pipeline losses would be about 231,400 barrels.

As previously announced, total net crude oil deliveries into the NAOC export pipeline from the Umusadege field for April 2015 were approximately 209,180 barrels.

The report also noted that the actual NAOC pipeline and export facility losses have not been allocated for April 2015 because allocation was suspended beginning in December 2014 by the Department of Petroleum Resources (DPR), pending an approved loss computation formula. But Mart had previously estimated that pipeline and export facility losses for April 2015 would be about 36,520 barrels based upon the 12-month rolling average rate of pipeline and export facility losses of 17.46 per cent between December2013 and November 2014.

According to the update, the NAOC export pipeline experienced no significant shut downs in May 2015.

 

– This Day

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