The Federal Government has announced new dates for re-opening of two major oil and gas installations in Nigeria-Bonga Floating Production Storage and Offloading (FPSO) and Forcados line.
Minister of State for Petroleum resources, Dr. Ibe Kachikwu, who said this in a report, stated that Forcados would reopen in June and Bonga in July. Shell, operator of Bonga, had earlier said that the facility would re-open by April.
The shutdown of these facilities have impacted the crude production in Nigeria as over 225, 000 barrels of oil is shut-in on Bonga asset alone. Meanwhile, Nigeria has made plans to restore oil output known just as OPEC weighs extending the quota cuts for its members.
Kachikwu, who revealed the country’s plan to restore output, maintained that this was based on the expectation for completion of maintenance and repairs works on the two oil installations.
Africa’s biggest producer, he said, would finish repairs on the Forcados pipeline by June and complete maintenance at the Bonga oilfield the following month, Kachikwu said in a Bloomberg Television interview.
The country’s output slumped to 1.27 million barrels a day last month, the lowest in decades, according to data provided by the nation. It aims to reach 2.2 million barrels a day.
With production losses due to militant attacks, Nigeria had been exempt from output cuts by the OPEC. The nation will join the OPEC measure once it has fully restored output it’s lost, which could happen as early as October or November and, meanwhile,expects the counterparts to extend the cuts to keep oil prices above $50 a barrel, Kachikwu said.
“I’m not sure we have an alternative, we’ve got to,” Kachikwu said. “There’s a lot of energy around a six-month extension,” which should be “easy” to agree when ministers meet in May.