The massive investment that Pan Ocean, a leading indigenous oil and gas sector player has made in its Amukpe-Escravos Pipeline Project (AEPP) is set to begin to pay off in 2019 and beyond as the project enters completion stage.
The 67-kilometer pipeline project was jointly initiated by state-owned oil company, the Nigerian National Petroleum Corporation (NNPC) and Pan Ocean. When complete, it will boost the capacity of crude oil producers to export, especially from Nigeria’s mid-western Niger Delta area and strengthen oil sector related infrastructure.
When fully operational, investors and the Nigerian economy will feel the full impact of the asset as it will significantly reduce pressure on the 87-kilometer Trans-Forcados Pipeline (TFP), an over four-decades-old pipeline system.
The last two decades have seen the Trans-Forcados Pipeline struggle as it has experienced several breaches as the system has become an easy target for criminal elements and vandals looking to scoop crude oil.
Even though it is designed to transport Pan Ocean crude, the plan is to accommodate other neighbouring Producers (injectors) on Tariff. Possible customers include Seplat, NPDC, Enageed, Summit, Newcross Petroleum, Continental Oil & Gas Pan Ocean PSC all of which have operations in Nigeria’s mid-western Niger Delta.
Source: Business Day