Home / Business / Nigeria loses 400,000bpd as Shell shuts Forcados terminal

Nigeria loses 400,000bpd as Shell shuts Forcados terminal

Brent crude oil

Shell Petroleum Development Company of Nigeria Limited on Sunday said it was forced to shut the Forcados export terminal in Delta State, following a leak on a pipeline.

As a result of the development, about 400,000 barrels per day of crude exports are affected by the closure, more than a fifth of the 2.2 billion barrels produced daily by the country.

Shell’s spokesman, Precious Okolobo, told the Associated Press that the terminal’s subsea crude export line was closed on March 4 as soon as the leak was detected.

Okolobo said the cause of the leak was still being investigated.

The government says it is losing about 200,000 barrels of crude daily to oil thefts. Those have been limited to hacking into pipelines on land in the Niger Delta.

Shell and other third parties export crude oil through the terminal, which was shut on October 19, 2012, due to flooding and damage to the supply pipelines.

However, the company resumed loadings at the terminal on November 21, 2012 and also lifted the force majeure declared on exports of the Forcados grade of crude oil.

Meanwhile, it has been revealed that the country earned $24bn in revenue and dividends from the operations of the Nigeria Liquefied Natural Gas in Bonny Island in the last 15 years.

The Managing Director, NLNG, Mr. Babs Omotowa, stated this at the company’s celebration of its 3,000th LNG export cargo in Abuja on Sunday.

He explained that $13bn was earned as dividends, while $11bn was made as revenue from the sale of feed gas.

According to Omotowa, the country now owns $14bn worth of LNG assets on the Bonny Island, adding that the country had gained $50bn from its investment of $2.5bn 15 years ago.

Through the LNG investment, he said about four trillion cubic feet of associated gas that could have been flared in the country had been captured, leading to reduction in gas flaring by upstream oil and gas companies from over 60 per cent to less than 25 per cent.

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