Seplat begins transportation of crude oil through Amukpe-Escravos pipeline

Seplat Energy has commenced the transportation of crude oil through the new Amukpe-Escravos Pipeline located in Niger Delta.

This is one of the steps taken by the company to mitigate the loss of revenue recorded at Trans Forcados System.

The company previously depended on the Trans Forcados System route to transport its crude to the export terminal, but often records disruption through vandalism and pipeline maintenance.

Ripples Nigeria gathered these factors negatively impacted Seplat revenue as some of the crude that passes through Trans Forcados System were stolen by criminals in the region.

In a statement issued on Monday, the company said the new route is expected to plug the holes in the system.

The Amukpe-Escravos pipeline is connected to Seplat Energy’s major assets OML 4, 38 and 41.

According to Seplat, liquid from the pipeline will flow through the Chevron-operated Escravos Terminal, and has the capacity to transport 160,000 barrels of oil per day.

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The statement read: “Seplat Energy Plc, a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange, is pleased to announce that it has begun commercial injection of crude oil through the new Amukpe-Escravos Pipeline.

“The 67km mostly underground pipeline is expected to provide a more reliable and secure export route for liquids from Seplat Energy’s major assets OML 4, 38 and 41, connecting them with the Chevron-operated Escravos Terminal. It has a capacity of 160,000 bbl/day, of which the Seplat Energy / NPDC joint venture is entitled to inject 35,000 bbl/day. Dewatering was completed on Friday 29 July and the Site Acceptance Test is now underway with commercial volumes.

“Until now, the Company has relied on the Trans Forcados System, which has experienced numerous disruptions in recent years due to pipeline maintenance and vandalism, which have impacted the Company’s revenues.”

Speaking on the project, the company’s Chief Executive Officer, Roger Brown, said: “The commercial launch of the Amukpe-Escravos Pipeline is a significant event for Seplat Energy and for Nigeria, offering a more secure and reliable export route that will assure higher revenues and profitability for Seplat Energy, enabling us to make a larger contribution to Nigeria’s economy.

“We commend the work that has made this possible and appreciate the efforts of our partners and all contractors involved to create this more reliable and secure export route for Nigeria’s oil.”

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