The Amukpe-Escravos pipeline as a game changer

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Assets stock in Nigeria’s oil and gas industry is set for significant upgrade as Pan Ocean Oil Corporation’s ultra-modern Amukpe-Escravos Pipeline comes onstream in 2019. Pan Ocean Oil Corporation is the first indigenous oil and gas exploration and production company to enter into joint venture operations with the Nigerian National Petroleum Corporation (NNPC).

 

A national asset, the new pipeline is strategic to the economy as it will ease the burden of transporting crude oil down the circa 67-kilometre corridor from Amukpe to Escravos, for export.

 

However, there are other reasons why it is novel. First, the pipeline project was inspired by leading indigenous oil and gas sector player, Pan Ocean Corporation (in conjunction with the Nigerian National Petroleum Corporation), under the visionary leadership of Dr. Festus Fadeyi.

 

Secondly, the project was financed by a consortium of indigenous banks, led by Polaris Bank (Formerly Skye Bank Plc). A third reason is that Nigerian engineering companies put the pipeline in place.

 

Because of these reasons, the Amukpe-Escravos Pipeline is considered by industry experts as a posterchild of the Nigerian Oil and Gas Industry Content Development Act of 2010. As it stands as testimony to what is possible if policymakers and private sector operators collaborate.

 

But some have wondered why it took eight (8) years to complete the project. To those who know the oil and gas industry well, it is obvious that a project of this magnitude takes time to complete. Also, the unpleasant vagaries of oil price put tremendous pressure on major all oil and gas industry projects in the last four years.

 

Therefore, what is important as at today, is that with the addition of the new pipeline, assets in the oil and gas sector now looks more ‘Nigerian’ than at any time in history, as Nigerian companies are taking up roles, and owning assets that were once off limit.

 

The local content act has three objectives. It aims to give independent Nigerian operators first consideration in the award of oil blocks, oil field licenses, oil lifting licenses and all projects for which contract is to be awarded in the oil and gas industry subject to the fulfilment of specified conditions.

 

The law also specifies that there shall be exclusive consideration of indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute work to bid on land and swamp operating areas for contracts and services.

 

Furthermore, that law states that compliance with its provisions shall be a major criterion for award of licenses, permits and any other interest in bidding for oil exploration, production, transportation and development in the industry. Pan Ocean’s 67-kilometre Amukpe-Escravos pipeline meets all of these provisions.

 

As an asset that has national strategic importance, it will ease the pressure on the 87-kilometre Trans-Forcados Pipeline, which is over four decades old and prone to disruptions and attacks. Trans-Forcados Pipeline was shut down for 305 days in 2016, and more than 182 days in 2017.

 

A major advantage of Pan Ocean’s pipeline is that unlike the Trans-Forcados Pipeline, which is largely on the surface and therefore prone to attacks, the Amukpe-Escravos pipeline is safely buried underground. It is a 20-inch, 160 000bpd capacity pipeline put in place using Horizontal Directional Drilling.

 

Though it was designed to convey Pan Ocean’s crude, the idea is to also accommodate other neighbouring crude oil producers (injectors) on tariff, this is what really makes the difference. Which crude producer or exporter will not cheer at the idea of using an asset that is more reliable and has less impact on the environment?

 

Indeed, the Nigerian Oil and Gas Industry Content Development Act has made more Nigerian companies step up to the podium. As more companies key into its opportunities, the economy will be better off.

Adeniyi Ogunfowoke
Adeniyi Ogunfowokehttps://naija247news.com/
**Senior Correspondent Profile: Adeniyi Ogunfowoke** Adeniyi Ogunfowoke is a seasoned Senior Correspondent at Naija247news.com, bringing a wealth of journalistic expertise to the dynamic landscape of news reporting. With an extensive background in the field, Adeniyi has consistently demonstrated a commitment to delivering insightful and compelling stories to Naija247news.com's diverse readership. **Professional Background:** Adeniyi Ogunfowoke has amassed a wealth of experience in journalism, having covered a myriad of beats over the years. His versatile reporting style reflects a deep understanding of socio-economic issues, politics, and global affairs, providing Naija247news.com readers with a comprehensive perspective on current events. **Areas of Expertise:** As a Senior Correspondent, Adeniyi specializes in investigative reporting, offering in-depth analyses that go beyond the surface of news stories. His keen eye for detail and ability to connect the dots in complex narratives make him an invaluable asset to Naija247news.com. **Notable Achievements:** Throughout his career, Adeniyi Ogunfowoke has received recognition for his outstanding contributions to journalism. His bylines have become synonymous with well-researched, informative, and thought-provoking articles that resonate with a broad audience. **Commitment to Excellence:** Adeniyi's commitment to journalistic integrity is evident in his dedication to delivering accurate and timely news. His work reflects the core values of Naija247news.com, emphasizing credibility, transparency, and a commitment to keeping the public well-informed. **Engagement and Impact:** In the digital era, Adeniyi understands the importance of engaging with readers. His articles not only inform but also spark conversations, fostering a sense of community and dialogue among Naija247news.com's audience. **Future Endeavors:** As a Senior Correspondent, Adeniyi Ogunfowoke continues to set high standards for journalistic excellence. His future endeavors include exploring emerging trends in media, staying ahead of the news curve, and contributing to Naija247news.com's ongoing success as a trusted source of information. Follow Adeniyi Ogunfowoke's insightful reporting on Naija247news.com for a nuanced understanding of current affairs, backed by experience, dedication, and a passion for uncovering the untold stories.

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