Trans Forcados Oil Pipeline Resumes Operation

By May 24, 2018 Investment News

Flows of crude oil along Nigeria’s Trans Forcados pipeline have started to ramp up again after an outage of almost a week, several trading sources said on Wednesday.

The pipeline, which usually carries around 200,000 to 240,000 barrels of oil per day, was closed to repair a leak a week ago.

Royal Dutch Shell, which operates the Forcados oil terminal, said earlier in the day that exports had not been disrupted by the closure, although industry sources said June-loading cargoes of Forcados crude had already been deferred to July because of the temporary shutdown.

One industry source with knowledge of the matter said an inspection report had shown a pumping station further up the pipeline had restarted.

Operator Heritage Oil Ltd was not immediately available to comment.

Meanwhile, Royal Dutch Shell said on Wednesday a declaration of force majeure remained in place on shipments of Nigerian Bonny Light crude oil, while exports at the Forcados shipping hub were running as normal.

Shell’s Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Ltd (SPDC), said on May 17 it had declared force majeure on exports of Bonny light following a shutdown on the Nembe Creek Trunk Line stream.

Exports of Bonny Light are expected to run at around 195,000 barrels per day next month, making it Nigeria’s third largest crude oil stream, behind Forcados and Qua Iboe.

Shell said in an emailed statement that operations at the country’s Forcados oil terminal were running normally, despite a closure last week of the Trans Forcados Pipeline that carries a number of grades to the coast for export.

Source: Daily Trust