NNPC Records Over $800 Revenue Loss To Contract Breaches

NNPC-towers-1-888The Nigerian National Petroleum Corporation (NNPC) recently let it out that it lost over $800million revenue to all the stakeholders owing to breaches of contracts of its old regime.

In 2018 alone, it lost over 60 days of production due to incessant breaches on the Trans Forcados Pipeline (TFP) despite having a security contract in place, The state-run oil firm made it known. .

The oil firm has explained the reported award of oil infrastructure surveillance contract to an indigenous firm, Ocean Marine Solutions for the protection of the strategic 87-kilometre TFP.

In a statement, NNPC said the new contract which requires the contractor to pay for any damage to any inch of pipeline under its watch, offers immeasurable benefits to the NNPC, its Joint Venture partners, the host communities and the entire federation.

According to the NNPC, faced with massive losses in projected revenue, stakeholders in the TFP which today accounts for daily production of over 250, 000 barrels of crude oil were unanimous in the decision to seek better ways of ensuring reliability and availability of the line.

It said based on this scenario, Ocean Marine Solution was assigned to handle the TFP under the proof of concept arrangement which is yielding great results in the Bonny-Port Harcourt and Escravos-Warri crude evacuation lines.

Under this deal, the surveillance company is obligated to protect the lines and bear the cost of repairs if and when there is any breach to the pipeline.

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