• Contact Us
  • About Us
Monday, July 14, 2025
  • Login
MetroBusinessNews
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate
No Result
View All Result
MetroBusinessNews
No Result
View All Result
ADVERTISEMENT
Home Energy

Forcados resumption to boost December FAAC allocations by N180bn

metro by metro
November 1, 2016
in Energy
0
refinery
0
SHARES
0
VIEWS
… increase power supply by 2,000mw power
Revenue to Federal Accounts may increase by about N180billion in December with the resumption of about 300,000 barrels per day (bpd) Trans-Forcados Pipeline (TFP) export terminal in Delta state at the current rate of $50 per barrel baring further attacks on the facility.
Market sources say that Royal Dutch Shell along with Axion Energy Argentina SA and Pampa Energia SA, have concluded arrangement for 1million/bbl of Forcados crude grade set to be sold in November futures market.
Analysts say the attack on the facility shrank gas production in Nigeria to 601mmscf/d from the usual 1.1bcf/d production resulting in the loss of about 2,000megawatts of electricity. This capacity coming back on stream is mitigating the shortfalls in gas supply due the October 25 attack on the gas section of Chevron’s 439 kilometre Escravos-Lagos pipeline system (ELPS)
Also, the resumption of Forcados terminal has helped Nigeria ramp up production from 1.6million bpd to 2million bpd.
Analysts say it is a positive move for Nigeria who was granted exemption from supply cap agreement reached by Organisation of Petroleum Exporting Countries (OPEC) to shore up oil prices that have fallen by over half of 2014 levels.
“Nigeria’s current output of 1.8 million barrels per day will see a rise with Forcados to 2million bpd,” said Giovanni Staunovo, commodity analysts at UBS Wealth Management.
Industry sources say it may take up two weeks to resume full loading as preparatory activities including cleaning the terminal is on-going.
“Nigeria’s Forcados export pipeline undergoing cleaning, testing after repairs. The work is to be concluded Wednesday,” said Staunovo.
Mor
Shell declared a force major ( a legal clause that allows it stop shipments without breaching contracts) on the crude grade one week after the export line was attacked by militants calling themselves Niger Delta Avengers in February.
As a result of the attacks and the consequent low oil prices, Federal Government revenues and those of companies making use of the terminal.
“These attacks are hurting the economy so all options, channels and considerations should be made to stop the spreading ripple,” said Chijioke Mama, founder and CEO of EnergyDatar an advisory firm in an e-mail response.
Federal Government revenue in September was reduced by about 12% from August to N279.75 billion ($8 billion), according to Kemi Adeosun, finance minister.
She also stated that despite the rally in global oil prices averaging $48.43/b in June, Nigeria’s export volume declined by 1.15 million barrels in that month, resulting in a $46.52 million drop in oil export sales for the government.
Seplat Petroleum Development Company Plc published 9 months results in 2016, reflected obvious challenges from shut-ins in the Trans Forcados Pipeline (TFP). Sales declined 51.7% YoY to $202.7 million due to a 66% decline in crude revenue after lifting adjustments to $127 million.
Gross profit for the period was 61.5% lower on a year ago basis to $73.9 million. Similarly, the company reported Loss before and loss after of $87.6 million and $97.7 million respectively this is against PBT ($68.4 million) and PAT ($68.6 million) over the same period in 2015.

Read Also

Senate Passes Electricity Act Ammendment Bill To Tackle Sector Collapse

AEDC At It Again As Power Outage Hits Parts Of Abuja

Lagos Issues Order To Regulate Electricity Market Operations

Previous Post

‘NNPC can sustain gas supply for 5,000MW daily generation’

Next Post

Senate rejected President Muhammadu Buhari’s $29.96 billion loan request

Related Posts

Senate
Energy

Senate Passes Electricity Act Ammendment Bill To Tackle Sector Collapse

July 9, 2025
AEDC Attributes Outages To Explosion, Technical Fault As Over 20 Communities Thrown Into Darkness During Easter
Energy

AEDC At It Again As Power Outage Hits Parts Of Abuja

June 25, 2025
LASG Warns Residents Of Ogun River Banks On Imminent Flooding
Energy

Lagos Issues Order To Regulate Electricity Market Operations

June 11, 2025
Abuja, Kogi, Two Other States To Experience Darkness As AEDC Workers Threaten Shutdown Of Electricity Supply
Energy

Abuja, Kogi, Two Other States To Experience Darkness As AEDC Workers Threaten Shutdown Of Electricity Supply

June 5, 2025
Next Post
Buhari sends 2017 draft budget to Senate for approval

Senate rejected President Muhammadu Buhari’s $29.96 billion loan request

London Southend Airport Closed, All Flights Cancelled After Small Plane Crash

London Southend Airport Closed, All Flights Cancelled After Small Plane Crash

July 14, 2025
Rampant Chelsea Thrash PSG To Clinch Club World Cup Title

Rampant Chelsea Thrash PSG To Clinch Club World Cup Title

July 14, 2025
His Royal Majesty Awujale Of Ijebuland, Oba Sikiru Adetona

His Royal Majesty Awujale Of Ijebuland, Oba Sikiru Adetona

July 13, 2025
MetroBusinessNews

© 2022 Metro Business News

Navigate Site

  • Contact Us
  • About Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Economy
  • Politics
  • News
  • Companies and Markets
  • Energy
  • Sports
  • Real Estate

© 2022 Metro Business News

Go to mobile version