IDSL not responsible for NLNG pipeline explosion – NNPC

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By Michael Eboh

Integrated Data Services Limited, IDSL, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, yesterday, denied responsibility for the pipeline explosion which occurred Thursday, at a Nigeria Liquefied Natural Gas Limited, NLNG, pipeline in Emohua Local Government Area, Rivers State.

In a statement signed by Group General Manager, Group Public Affairs Division, NNPC, Mr. Ndu Ughamadu, IDSL said its operation crew which was engaged in acquiring seismic data for SPDC in Oil Mining Lease, OML, 17/22 ROBO 3D prospect, observed approved safe distance standards contained in the Department of Petroleum Resources,’ DPR, regulations and as such could not be the cause of the blast.

It said, “Our activities involved the use of seismic explosives of size two kilogrammes and detonators. The drilled and exploded depth is 45 metres. At this depth the effect on the surface cannot affect any structure.

“The suspected gas leakage on the gas pipeline between Eveku and Rumodogo 1 communities in Emohua Local Government Area of Rivers State of February 22, 2017 was not caused and cannot be caused by NNPC, IDSL Party 05 seismic operations. Our closest activity around the incident area yesterday was 798 metres away from the pipeline.”

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Ughamadu stated that as a responsible corporate body, IDSL’s crew on operation in Emohua Local Government Area observed, to the letter, DPR’s regulations governing such activities which include: maintaining a minimum distance of 25 metres from tarmac roads, 50 metres from houses, 100 metres from pipelines, and a minimum distance of 200 metres from well heads or oil wells.

According to him, IDSL crew was 798 metres away from the exploded pipeline, adding that relevant authorities in Rivers State have been informed of the incident.   Meanwhile, the Nigerian National Petroleum Corporation, NNPC, also disclosed that it had secured a $416,000 per day reduction, about N126.88 million daily, in its deep offshore rig-rate.

According to a statement by the NNPC in Abuja, its Group Managing Director, Mr. Maikanti Baru, stated this at the 14th Annual Aret Adams Memorial Lecture. Baru, was represented at the event by the Chief Operating Officer, Gas & Power, Mr. Saidu Mohammed. Baru also stated that the NNPC has successfully reduced its Unit Technical Cost, UTC, from $70 per barrel of crude oil obtainable in 2014, to about $27 per barrel as at the end of 2016.

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Baru noted that the deep offshore rig-rate was renegotiated from a staggering $580,000 to $164,000 per day, saving the country a 71.7 per cent cost of executing a similar operation in the past.

He added that the NNPC had achieved a 35 per cent downward review of rig rates per day for both swamp and land operations in its portfolios.

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