Pan Ocean Nigeria Limited, a major player in the oil and gas sector, has announced that its Amukpe-Escravos Pipeline Project will start delivering value in 2019. The gas pipeline project which was jointly initiated by the NNPC and the company upon completion will boost the capacity of crude oil producers to export and also boost oil sector related infrastructure.
The gas project was started seven years ago and has already gulped several millions of dollars in finances which were made available by a consortium of Nigerian Banks led by Polaris Bank Limited (former Skye Bank Plc).
According to David Aboderin, General Manager, Gas/AEEP noted that when fully completed, investors and the Nigeria economy will feel the full impact of the assets as this will reduce the pressure on the 87-kilometre Trans Forcados Pipeline.
Recall that the recent disruption on the Forcados Pipeline forced major oil producers to lock-in output, a situation which caused the government considerable budget strains. According to Reuters, the Trans Forcados Pipeline was shut down for 305 days in 2016, and more than 182 days in 2017.
Another player in the oil and gas sector, Seplat Petroleum Development Company Plc recently revealed plans to focus more on expanding its domestic natural gas business to improve its profitability. The company revealed plans to commission its 160,000 barrels per day gas pipeline project by the end of this year. Seplat’s 2017 financial reports show the company’s total revenue was $452 million dollars (N81.11 billion) out of which $124 million was realised from gas sales.
The pipeline upon completion is expected to provide access to at least three export routes at their western assets and two of their eastern assets, thereby de-risking the distribution of their product to the market.
Pan Ocean Oil Corporation (Nigeria) Limited was incorporated in 1973. Since then, it has been operating as an exploration and production company in a Joint Venture with the Nigeria National Petroleum Company (NNPC), on-shore the northern fringe of the Niger Delta.