Yemisi Izuora/Agency Report
An international oil and gas company Mart Resources has raised concerns over losses owing to problems at Nigeria pipelines.
In a trade update for January and February, Canadian-headquartered Mart Resources said the Umugini pipeline was down for three days in January due operational problems and maintenance work done on the pipeline.
Further to its previous disclosures regarding the absence of accurate and reconcilable injection data from Shell Petroleum Development Company of Nigeria Limited (SPD”), the operator of the Trans Frcados oil export terminal system, Mart and its co-venturers have received unreconciled reports that include only preliminary gross oil injection volumes and estimated pipeline and export facility losses.
“From our initial review, it is not clear whether the reported volumes represent all producers on the system or only Mart and its co-venturers,” Mart stated.
Mart said it had with its co-venturers requested additional and more complete information from SPDC in order to accurately reconcile volumes and any attributed pipeline losses.
“However, based upon preliminary analysis of the volume and loss information provided, Mart has calculated that the average loss rate could range between 10 percent and 21 percent of gross oil injections.”
The company cautioned it was currently not able to obtain confirmation of these values, and it was not able to perform a reliable reconciliation.
Meanwhile, Matt said based upon Mart’s internal production and facility data, the company estimates that Umusadege field deliveries into the Trans Forcados export pipeline connected to the Forcados oil export terminal were approximately 454 410 bbls in January 2016.
“Based upon historic pipeline losses encountered by other exploration and production companies utilizing the Trans Forcados export system, Mart estimates pipeline and export facility losses of 10 percent,” said Mart.