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Power failure, others stall 2.54 million barrels oil production
#1
Power failure, others stall 2.54 million barrels oil production
Published March 22, 2020


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Oil production shut-in caused by loss of power at the Akpo terminal, coupled with equipment failure, pipeline leaks, among others, in other terminals stalled the production of 2,539,390 barrels of crude in one month, latest industry data have revealed.
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Figures obtained from the latest monthly financial and operations report of the Nigerian National Petroleum Corporation showed that the 2.54 million barrels could not be produced in November 2019 due to the challenges.

The NNPC described the development as major setbacks that affected production in the month under review.
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The national oil outlined nine terminals, particularly in the Niger Delta, that suffered one or more of the setbacks, adding that this impacted negatively on the production of crude oil in the affected facilities.
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At the Bonga terminal, the oil firm said there was production shut-down due to framo pump issues with cumulative loss of 226,000 barrels per day.
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It said the Ogu Ocha terminal witnessed production shutdown due to the occupation of the oil firm’s flow station by host communities.
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As a result of this, the NNPC explained that the “asset management team of the OML 42 declared force majeure on Jones Creek blend and production cut was 42,000bpd for eight days.”
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For the Erha terminal, it said production shut-in was for two days due to maintenance activity and flare management with a total loss of 304,490 barrels.
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It noted that for the Bonny terminal, the Trans Niger Pipeline was shut down for just a day due to leaks from July 29, 2019 to August 8, 2019 with shut-in of 20,000 barrels.
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The Qua Iboe terminal had production shut-in from May 25, 2019 to June 6, 2019 following equipment failure and production was shut-in for another six days at Asabo due to maintenance.

The cooperation said the cumulative loss of production at Qua Iboe terminal within the period was 235,000 barrels, while there was full field shutdown for three days for the replacement of corroded actuator with a total loss of 221,200 barrels at the Amenam terminal.
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The production shutdown at Sea Eagle terminal was due to issues with the bearing terminal mooring system from July 9, 2019 to August 31, 2019, with production cut of 22,000bpd for a period of 30 days. The cumulative loss here was 660,000 barrels.
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The NNPC further stated that oil production was shut-in at the Egina terminal due to loss of level in cooling water expansion drum, reduction of interface level in both wash tanks and riser protector replacement.

“Cumulative loss of production (at Egina terminal) was 442,700 barrels over a period of nine days,” it said.
The corporation added that for the Akpo terminal, there was “production shut-in due to emergency shutdown caused by loss of power. Production cut was 47,000bpd in two days.”
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On products theft and pipeline security, the oil firm said vandalism and the stealing of crude oil had continued to destroy value and put the NNPC at disadvantaged competitive position.
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It stated that a total of 1,905 vandalised points were recorded between November 2018 and November 2019.
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The Minister of State for Petroleum Resources, Timipre Sylva, had stated at a workshop in Abuja in November that the country was losing so much revenue due to shut-ins, pipeline vandalism and high cost of crude oil production.
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