Forcados, Qua Iboe Shutdown Hit Seven Energy

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An integrated gas company in south-east Nigeria with upstream oil and gas interests in the region, Seven Energy International Limited has been hit by the shutdowns of Forcados and Qua Iboe terminals.


The company, which made this known in its results for the six months ended June 30, 2016, said gross production under the Strategic Alliance Agreement between Seven Energy and the Nigerian Petroleum Development Company from Oil Mining Leases 4, 38 and 41 averaged 18,800 barrels of oil per day in the first half of this year, compared to 47,200 bpd in the same period last year.

It said the drop in production was due to the shutdown of the Forcados terminal and declaration of force majeure by Shell from mid-February.

It added, “Current expectations are that the force majeure will be lifted late in the third quarter of 2016.”

Seven Energy said it lifted no oil from the OMLs during the first half of the year, compared to 1.8 million barrels last year.

It said liftings from Stubb Creek and Uquo fields during the period totalled 182,000 barrels, down from 85,000 barrels in the first half of 2015.

The company said, “In July, ExxonMobil declared force majeure at its Qua Iboe terminal which is currently shut down and has resulted in oil production from Uquo and Stubb Creek being suspended for an undefined period.”

Seven Energy posted a loss after tax of $4.5m in the first half of 2016, compared to the $53m loss it recorded in the same period last year. The reduction in the loss was as a result of a $40m foreign currency exchange gains from the recent decline in the value of the naira.

The Chief Executive Officer, Seven Energy, Phillip Ihenacho, said, “The macro-environment in Nigeria and the ongoing issues within our industry present our company with an extremely challenging environment. So far during 2016 we have received no revenue from our interests in OML 4, 38 and 41 as a result of the shutdown of the Forcados terminal.


Niyitabiti

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