Shell Lifts Forcados FM, Seplat's Plight Eased

Nigerian independent producer Seplat said June 7 it has received notification from Shell that it has lifted force majeure (FM) on oil exports from the Forcados terminal.

Shell confirmed to NGW that it lifted the 17-month-long FM with effect from 16:00hrs (Nigerian time) June 6 following the completion of repair of the leaks on the Forcados terminal crude export line. It expressed gratitude to the federal and Delta state governments and agencies, state partner NNPC and communities for their "support in the repair of the three sabotage leaks on the pipeline."

Nigeria's minister for petroleum resources Ibe Kachikwu announced plans this April to incentivise those involved in illegal refining not to attack the country’s oil and gas pipelines.

Lagos and London-listed Seplat said June 7 that, since resumption in late May 2017 of oil and condensate injection into the Forcados system, it has been able to reinstate gross production at OMLs 4, 38 and 41 to pre-FM levels of about 75,000 b/d and 290mn ft³/d, or 125,000 barrels of oil equivalent per day gross (56,000 boe/d net to Seplat’s 45% interest).

This contrasts with 1Q 2017 production, reported April 28, of 7,721 b/d only plus 211mn ft³/d, so a total of only 42,854 boe/d gross (so 19,284 boe/d net to Lagos/London-listed Seplat).

Seplat CEO Austin Avuru said: "The resumption of exports at the Forcados terminal has enabled us to very quickly de-constrain production, and in doing so once again demonstrate Seplat's strong underlying fundamentals."

Mark Smedley