The Nigerian National Petroleum Corporation (NNPC) has said that over $800m (N244.8bn) had been lost to breaches in the Trans Forcados Pipeline in 2018.
This figure was revealed in a statement on Tuesday by the NNPC while clarifying the award of oil infrastructure surveillance contract to Ocean Marine Solutions for the protection of the 87-kilometre TFP.
According to the statement, it is “Faced with massive losses in projected revenue, stakeholders in the TFP, which today accounts 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.
“In 2018, we lost over 60 days of production due to incessant breaches in 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 $800m in lost revenue to all the stakeholders in the matrix, which includes the NNPC, its JV partners and the Nigerian federation.”
It added that “This arrangement is totally different from the old order where the contractor gets paid for surveillance duties and is totally exempted from repair cost or any form of responsibility in the event of any line break or breach to the pipeline he is paid to watch.”
In addition, it noted that “The cost of the new deal pales into insignificance when placed side by side and value-for-money with the old arrangement.”
The NNPC said after the loss of over 60 days of production under the old contract, over $32m.