You Won’t Believe How Much Nigeria Lost In Five Months Over Forcados Shutdown | Nigeria Newspaper- Nigeria News| Naija News

28.7.16

You Won’t Believe How Much Nigeria Lost In Five Months Over Forcados Shutdown

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Oil-platform-
Five months after it was attacked and shut down, Shell’s Forcados export line remains offline, causing the country a loss of about $1.6bn (N356.6bn) in revenue.

It is still uncertain when the pipeline would come back on stream, although the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, had said earlier this month that repairs would be completed by the end of July.
In February 21, Shell declared force majeure – a legal clause that allows it to stop shipments without breaching contracts – a week after militants blew up a pipeline feeding the Forcados export terminal, knocking out at least 250,000 barrels per day.
The International Energy Agency had in April estimated that Nigeria could lose an estimated $1bn (N197bn) in revenue by May, when repairs of the Forcados terminal was expected to be completed.
The IEA said,
“The Forcados terminal in Delta State, one of Nigeria’s biggest terminals, was scheduled to load 250,000 barrels of crude per day. At $40 per barrel, Nigeria could stand to lose an estimated $1bn between February, when force majeure was declared, and May, when repairs are expected to be completed.”

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