Lagos — Construction of the 160, 000 barrels Amukpe-Escravos pipeline is gradually drawing to a close, as SweetcrudeReports leant that first liftings is expected at the fourth quarter of this year.
Nigerian indigenous oil firm, Seplat had in 2019, stepped in to bail out the Pan Ocean and NNPC Joint Venture, JV when the duo ran out of funding for the 67-kilometre alternate export pipeline.
Sources close to the matter hinted SweetcrudeReports that the pipeline was one of the three projects scheduled by Pan Ocean/NNPV JV to have been launched in June 2019.
It was, however, put on hold after news broke that Pan Ocean’s license on OML 98 had been withdrawn by the Department of Petroleum Resources, DPR.
Construction of the Amukpe-Escravos Pipeline was to export crude oil from OML 98, but the company’s rights to crude production on the acreage was revoked in April 2019. Also, the company no longer has a license to operate the Ovade-Ogharefe Gas Processing Plant Phases I & II.
Seplat had hoped the pipeline would come on stream before the end of 2019. The COVID-19 pandemic had slowed down work, shifting its completion and first lifting towards the end this year.
To add to the Trans Forcados Pipeline system and the backup export through the Warri refinery, the Amukpe to Escravos 160,000 bopd capacity pipeline will provide a third export option for liquids production at OMLs 4, 38 and 41.