Daily Trust yesterday Sunday reported that the
Nigerian Petroleum Development Company (NPDC) an upstream subsidiary of
the Nigerian National Petroleum Corporation (NNPC) has explained that
the pulverization of the Forcados trunk line militants in 2016
gravely impacted gas production NPDC and its JV partners for power
generation.

 Managing Director of the NPDC, Mr.
Yusuf Matashi made the explanation in a presentation on Sunday to the
House Committee on Local Content.

According to a statement NNPC
spokesman, Ndu Ughamadu, Matashi said the attack which primarily led to a
loss of about 70 per cent of NPDC’s crude oil production capability
also had an effect on gas production.

“Unfortunately gas production in the
region we operate is not non associated gas but associated with the
crude oil we produce so the time we shut in the oil well, we also
shut in most of the gas, that is why we now see the level of gas supply
shortage for power generation,’’ he said.   

He said though other operators might
have other reasons for the shortfall in gas supply in their domain, the
damage of the Forcados export terminal supply line was the biggest
obstacle to the production of gas the NPDC and its JV Partners. 

Matashi however said that the
company would increase its gas production as much as 50 per cent
whenever the Forcados line is back on stream. 

Describing the impact of the attack
as immeasurable, the MD said within the last one year, the company has
struggled to mitigate the effects on its production. 

On the NPDC local content compliance
level, Matashi noted that as an indigenous exploration and production
company, the NPDC is in sync with the letters and spirit of the
provisions of the Nigerian Content law in the oil and gas industry. 

Chairman of the House Committee on
Local Content, Emmanuel Ekon, said members of the Committee would in due
course embark on an oversight visit to NPDC facilities for proper
appraisal of the company’s compliance level with the extant law on local
content.