Analysts at Renaissance Capital (RenCap) in a report at the end of their recently held Annual Pan-Africa 1:1 Investor Conference in Lagos, have projected that the repair of the Trans Forcados Pipeline (TFP) will likely increase Nigeria’s production to about two million barrels per day (mbd), ThisDay reports.
Shell Petroleum Development Company (SPDC) recently disclosed that it had started testing the Trans-Forcados crude export pipeline for a potential restart after months of repair. RenCap stated: “We remain cautiously optimistic on the upstream oil & gas space, especially given that the TFP should be operational soon – positive not only for Seplat but also for Nigerian oil production; the TFP will likely increase Nigeria’s production by about 200,000 bl/d to about two million barrels per day.”
According to them, the nation’s oil and gas firms stated that militant activity has eased as Vice-President Yemi Osinbanjo had been in talks with groups in the Niger Delta. “In addition, we are impressed that Lekoil has sold first oil from the Otakikpo field, recording its first cash flow. Overall, we find the sector more stable than it was last year, and the players seem to us to prefer working with a more transparent government,” they said.