Fakoyejo OlalekanSeplat Energy has commenced transportation of crude through the new Amukpe-Escravos pipeline in Niger Delta, as the oil and gas company looks to reduce it dependence on Trans Forcados System.
The firm had previously been using the Trans Forcados System as route to transport its crude, and during the process, it had suffered revenue losses due to vandalism on the Forcados pipeline.
Trans Forcados System had also experienced maintenance problem, which causes setback in Seplat Energy’s revenue growth, a statement to the capital market authority, Nigerian Exchange Limited (NGX) disclosed.
Amukpe-Escravos pipeline will be used to transport crude from Seplat Energy’s major assets OML 4, 38 and 41, with capacity to move 160,000 barrel per day, for export, boosting the company’s revenue going forward.
The statement reads, “Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, is pleased to announce that it has begun commercial injection of crude oil through the new Amukpe-Escravos Pipeline.
“The 67km mostly underground pipeline is expected to provide a more reliable and secure export route for liquids from Seplat Energy’s major assets OML 4, 38 and 41, connecting them with the Chevron-operated Escravos Terminal. It has a capacity of 160,000 bbl/day, of which the Seplat Energy / NPDC joint venture is entitled to inject 35,000 bbl/day. Dewatering was completed on Friday 29 July and the Site Acceptance Test is now underway with commercial volumes.
“Until now, the Company has relied on the Trans Forcados System, which has experienced numerous disruptions in recent years due to pipeline maintenance and vandalism, which have impacted the Company’s revenues.”
Reacting to the new development, Seplat’s Chief Executive Officer, Roger Brown, said, “The commercial launch of the Amukpe-Escravos Pipeline is a significant event for Seplat Energy and for Nigeria, offering a more secure and reliable export route that will assure higher revenues and profitability for Seplat Energy, enabling us to make a larger contribution to Nigeria’s economy.
“We commend the work that has made this possible and appreciate the efforts of our partners and all contractors involved to create this more reliable and secure export route for Nigeria’s oil.”
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