NNPC: Why we re-awarded 87-kilometre Trans Forcados Pipeline contract


The Nigerian National Petroleum Corporation (NNPC) yesterday stated the reasons for its decision to cancel and re-award the contract for security of 87-kilometre Trans Forcados Pipeline (TFP) to a new firm.

The corporation stated that so far in 2018, it has lost crude oil worth $800 million from the line despite the former security contract.

In a statement signed by the corporation’s Group General Manager, Public Affairs, Mr. Ndu Ughamadu, in Abuja, it explained that the decision to assign the TFP surveillance package to indigenous firm, Ocean Marine Solutions, was reached after consideration of the huge losses on the line.

NNPC said it appraised the new company’s record of performance on the Bonny-Port Harcourt and Warri-Escravos crude evacuation lines, and found it impressive, adding that its contract with it would entail Ocean Marine paying for any damage to any inch of pipeline under its watch.
According to it, the new contract offered it and its Joint Venture (JV) partners, host communities and the Nigerian Federation, immeasurable benefits.

It said, faced with massive losses in projected revenue, stakeholders in the TFP which reportedly account for daily production throughput of over 250,000 barrels of crude oil were unanimous in the decision to seek better ways of ensuring reliability and availability of the line, hence, the termination of its previous security deal.

Providing a context, NNPC said in the statement: “In 2018, we lost over 60 days of production due to incessant breaches on the TFP despite having a security contract in place. In terms of production numbers, this translates to over 11 million barrels of crude oil which on face value equates to over $800 million in lost revenue to all the stakeholders in the matrix which includes NNPC, its Joint Venture partners and the Nigerian Federation.”

It noted that no responsible business entity or government would allow such level of loss to go on without taking swift actions to stop the losses.
Based on this, NNPC said Ocean Marine Solution was assigned to handle the TFP under a proof of concept arrangement which it said was yielding great results in the Bonny-Port Harcourt and Escravos-Warri crude evacuation lines.

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Joseph Afam (Local Contents and Partnership Editor) (070 3949 0464) Joseph Afam is a energy and finance journalist, who has years of experience in journalism, he started his journalism career in Nigeria’s top financial newspaper in Lagos. He’s a graduate of Economics and Finance from University of Ebonyi State, Nigeria He has won series of awards and regconitions Contact him for any editorial deals and advertorial issues on # Joseph.Afam@naija247news.com, editor@naija247news.com, Cell: 070 3949 0464


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