By Prince Okafor
LAGOS— The Nigerian Petroleum Development Company, NPDC, said, weekend, that the incessant damage on the Forcados trunk line in 2016 was responsible for the scarcity of gas witnessed across the country.
NPDC is an upstream subsidiary of the Nigerian National Petroleum Corporation, NNPC.
Managing Director of NPDC, Mr. Yusuf Matashi, who disclosed this, said: “The pulverization of the Forcados trunk line by militants in 2016 gravely impacted gas production by NPDC and its JV partners.
“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.”
Matashi explained that gas production in the company’s area of production was associated with the crude oil it produced, stressing that by the time the crude was shut in the oil well, much gas was also shut in.
“That is why we now see the level of gas supply shortage for power generation,” he expained.
He 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.
Matashi maintained that the company would increase its gas production by 50 per cent when the Forcados line was back on stream.
He noted that within the last one year, the company had struggled to mitigate the effects on its production, adding that the impact of the attack was immeasurable.
On the company’s local content compliance level, Matashi said as an indigenous exploration and production company, NPDC was in sync with the letters and spirit of the provisions of the Nigerian Content law in the oil and gas industry.
Recall that Seplat Petroleum Development Company Plc, in its latest report, said Trans Forcados trunk line could be re-opened towards the end of the second quarter of the year.
Seplat, which holds working interests in several fields in the Niger Delta and is exporting crude oil via Trans Forcados and the Warri refinery, has seen its production dropped in recent times due to the militant attacks that crippled Nigeria’s oil production last year.
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