07 March 2019, Sweetcrude, Lagos — Shell Petroleum Development Company of Nigeria Limited, SPDC’s Trans-Ramos pipeline is currently undergoing post-repair testing eight months after shutdown.
The Trans-Ramos Pipeline, which supplies crude oil to the SPDC JV Forcados export terminal, with a capacity of around 100,000 barrels per day, was shut down after a leak and is yet to resume export.
This puts a strain on Nigeria’s target of attaining production of 2.3 million barrels per day as stated in the country’s 2019 budget, with an oil benchmark of $60 per barrel.
Sources close to the matter hinted that although the pipeline had been repaired in late December however, it is undergoing extensive testing which includes statutory post-joint investigation visit activities, site assessment, remediation, and payment of compensation to the people and communities, Aghoro community in Bayelsa State, and Odimodi community in Delta State, impacted by the spills.
Our source was however not sure when the pipeline would restart.
The SPDC is the operator of the JV- the Nigerian National Petroleum Corporation, NNPC holds 55 percent; Shell, 30 percent; Total Exploration and Production Nigeria Limited, 10 percent; and NAOC, five percent.
The IOC said last year, that it had recovered over 95 percent of spilled oil from the spill which led to the shutdown of the pipeline.
Using the current exchange rate, a potential revenue of about $1.90billion has been lost as a result of the pipeline shutdown since May ending last year.
The long-term shutdown of the Trans-Ramos pipeline joins that of the Nembe Creek Trunk Line reported to have witnessed a fire incident last week.
While SPDC said export of Bonny Light from the Nembe pipeline was not in any way affected, operator of the pipeline, Aiteo, hinted that it had remained shut since February 24.
Market reports also indicate that Bonny Light is currently witnessing loading delay at the port.
Loading of another crude grade from Nigeria, Forcados, was also reported on Monday to have been delayed by at least 10 days after a leak in the main pipeline. The leak was said to be repaired last week.
The Forcados export terminal carries between 200,000 and 240,000 barrels of oil per day.