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Author Topic: Nigerian independents complete pipeline for oil export  (Read 503 times)

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Nigerian independents complete pipeline for oil export
« on: October 28, 2014, 11:12:15 AM »
The Umugini pipeline, a crude oil evacuation route for four Nigerian marginal field producers in the western Niger Delta, has been completed. The project that lasted for two years cost   Midwestern, Energia, Pillar and Platform  oil firms over $70 million to complete the 12” wide, 51-kilometre long pipeline, that  runs from the Umusadege field  in Oil Prospecting Lease (OPL) 283 , south to the Ogini flow station in the Oil Mining Lease (OML) 26 and then east to Shell’s Eriemu flow station.

Daily Independent gathered that the  line will connect Midwestern Oil and Gas’ Umusadege and Energia operated Ebendo fields to the Trans Forcados export pipeline. These two companies will switch from the Kwale hub to this route, whereas Platform Petroleum and Pillar Oil consider the new route as an alternative for their Egbeoma and Umuseti fields.

Mart Resources, a partner in the Umugini Asset Company Limited(UACL), the project’s operating firm, in a statement issued recently  noted that  the Eriemu flow station and other start-up activities including the pumping of line fill and the inspection of the Umugini pipeline facilities has been completed.” The line fill process is required to commence shipment of oil to the Trans Forcados crude oil export pipeline and onward to the Forcados oil export terminal

The  pipeline is ready for injection of crude into the Trans Forcados crude pipeline and Shell Petroleum Development Co. of Nigeria’s (“SPDC”) pipeline system connected to the Forcados oil export terminal. The commencement of oil flow will occur following the receipt of the formal authorization of oil injection by the operator of the Trans Forcados export pipeline..

Completion deadline for the line, with capacity to pump 45,000barrels of oil daily , had been postponed several times since early 2013. Project cost has shot up by over 33 per cent, to $70 million. The key challenge has been community demands along the pipeline right of way.

The pipeline was constructed as an alternate route to a 48km line to Agip’s export hub in Kwale where the Italian major applies strict restraints to intake.  The four operating companies (Midwestern, Energia, Pillar and Platform) evacuating crude through Kwale claim they have capacity to collectively deliver over 32,000 barrel of oil  through the facility but Agip would only allow 22,000 barrels of oil .

“We have over 6,000barrels of oil  locked behind pipe”, Midwestern  lamented. The Trans Forcados export pipeline will deliver crude oil from Umusadege and Ebendo fields to the Forcados export terminal operated by Shell, management of Midwestern firm noted.

http://dailyindependentnig.com/2014/10/nigerian-independents-complete-pipeline-oil-export/?


Adewale Odubiyi
Owner, Nigeria Oil & Gas Forum

Nigeria Oil & Gas Forum

Nigerian independents complete pipeline for oil export
« on: October 28, 2014, 11:12:15 AM »

 

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