Forcados trunkline attack responsible for Nigeria’s gas supply shortage – NPDC

The scarcity of gas being experienced across Nigeria has been attributed to last year’s incessant attacks on the Forcados trunk line.

The Nigerian Petroleum Development Company, NPDC, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, disclosed this on Sunday.

“The pulverization of the Forcados trunk line by militants in 2016 gravely impacted gas production by NPDC and its JV partners”, a statement by NNPC spokesperson, Ndu Ughumadu, quoted the Managing Director of NPDC, Yusuf Matashi, as saying.

“This primarily led to a loss of about 70 per cent of NPDC’s crude oil production capability which had an effect on gas production.”

Mr. Matashi, the statement stated, explained that gas production in the company’s area of production was associated with the crude oil it produced, adding that by the time the crude was shut in the oil well, much gas was shut in the process.

“That is why we now see the level of gas supply shortage for power generation,” he said.

The NPDC boss also noted that though other operators might have other reasons for the shortfall in gas supply in their domain, the damage of the Forcados export terminal supply line was the biggest obstacle to the production of gas by the NPDC and its JV partners.

He however pledged that the company would increase its gas production by 50 per cent when the Forcados line was back on stream, noting that within the last one year, the company had struggled to mitigate the effects on its production.

He also disclosed that the impact of the attack was immeasurable.

Commenting on NPDC’s local content compliance level, the managing director noted that as an indigenous exploration and production company, the company operates in compliance with the letters and spirit of the provisions of the Nigerian Content law in the oil and gas industry.

“Why we bombed Forcados pipeline.” – Militants

A militant group, Niger Delta Defence Corps (NDDC) has threatened to continue the bombing of oil pipelines unless its members were represented in the on-going peace meeting between the Pan Niger Delta group, headed by Chief Edwin Clark and the Federal Government.

NDDC, led by one General John Egbe, had threatened to blow up two pipelines in Delta and Rivers states, noting that the failure to invite the group would have dire consequences as the group would carry out attacks on oil pipelines.

A few hours after the first meeting between the Niger Delta leaders and the Federal Government, a major oil pipeline was blown up in Delta.

NDDC in a statement claimed responsibility and served notice that more oil pipelines would be attacked until representatives of the group were invited to join in the meeting between the Niger Delta stakeholders and the Federal Government. According to Egbe, more attacks on the oil pipelines would demonstrate to the Federal Government that the Pan Niger Delta group cannot halt the bombings of pipelines in the region.

He accused the Niger Delta elders of refusing to include representatives of militant groups in the Pan Niger Delta group and giving the Federal Government the impression that they can influence militants in the region.

He said the Federal Government should hold the Pan Niger Delta group responsibile for allowing the attacks as it did not ensure a proper representation, especially of militants in the meeting.

He said Chief Clark, King Diete-Spiff and some unnamed Niger Delta leaders from Delta masquerading as peace makers do not have the capacity to call militant leaders in the region to order.

“We, the Niger Delta Defence Corps (NDDC), are responsible for Trans-Forcados Export Trunk Line at Batan community in Warri South West Local Government Area of Delta State. As we promised the Federal Government on Monday, October 31, 2016, more attacks will soon be launched. Let the Federal Government hold Pan-Niger Delta Forum responsible for the attacks. They have not contacted us. The Federal Government should go to the media and contact all the groups and send us invitation and we will send our representatives. The Niger Delta leaders are aware that they cannot stop the bombing of oil pipelines. What they can do is to appeal which we can chose to ignore,” it said.

Following the festering militants activities in the region, President Muhammadu Buhari last Tuesday met with leaders from the region in Abuja.

The stakeholders tabled a 16-point demand.

The shopping list which bordered on the socio-economic development, security and restoration of peace in the region, included the need to fast-track interventions on some of the region infrastructure, award of oil bloc to Niger Delta indigenes, presidential amnesty programme, law and justice issues and the effect of increased military presence in the region

The forum is one of the strategies by the Federal Government to resolve the crisis.

Avengers Allegedly Blow Up Forcados Pipeline

The Niger Delta Avengers (NDA), the militant group which has claimed responsibility for most of the attacks on oil installations, says it has blown up a Shell Petroleum Development Company (SPDC) oil facility.

The Forcados pipeline, which transports 250,000 barrels per day, was first bombed in February and had just undergone repairs.

The militants also said it had hit the Brass to Tebidaba crude pipeline in the latest attacks to bring oil production and export to zero.

The militants made these claims on Twitter early Friday morning.

They tweeted: “At 3am today, NDAvengers blew up the SPDC forcados 48’ exportline.”

“We warned SPDC not to go ahead with repair works but they refused.”
On Thursday, they also claimed that they had blown up pipelines in Bayelsa state.

Nigeria’s 2016 budget is benchmarked at $38 oil price and production quantity of 2.2 million barrels per day.

Although oil price has risen to nearly $50, production has gone down to as low as 1.4 million barrels per day, leading to a shortfall.

The budget already had a $2 billion deficit before the Niger Delta crisis.

Credit: Sun