Trans-Ramos Pipeline: Nigeria, Oil Companies Lose N684bn

• Trans-Ramos Pipeline: Nigeria, Oil Companies Lose N684bn

Following Shell Nigeria decision to shut down the Trans-Ramos Pipeline in 2018, the Federal Government, Shell Nigeria, Total and Nigeria Agip Oil Company Limited have lost around $1.9 billion or N684 billion in revenue.

The Trans-Ramos Pipeline has a daily capacity of about 100,000 barrels and supplies crude oil to the SPDC JV-owned Forcados export terminal.

SPDC operates Trans-Ramos Pipeline in a joint venture between the Nigerian National Petroleum Corporation which owns 55 per cent of the business, Shell 30 per cent, Total Exploration and Production Nigeria Limited 10 per cent and NAOC 5 per cent.

A rough estimation put lost revenue of 100,000 bpd in eight months at $1.90 billion or N684 billion.

According to the data obtained from the Central Bank of Nigeria, the Nigeria’s reference crude grade, Bonny Light, traded at an average price of$75.38, $74.72, $73.35, $79.59 and $79.18 per barrel in June, July, August, September and October respectively, according to latest data obtained from the Central Bank of Nigeria on Wednesday.

While Brent crude, against which Nigerian oil is measured, traded at an average price of $64.75, $58.92, $59 and $63.96 in November and December, January 2019 and February, respectively.

Mr Bamidele Odugbesan, an SPDC’s spokesperson, stated on Monday that the pipeline will commence operation “when the post-repair testing is concluded.”

“As soon as clean-up and site assessment are completed, we are committed to starting the immediate remediation of the impacted areas in Aghoro and Odimodi,” a spokesperson for the SPDC said.