- Possibilities of Nigeria not meeting the production output quota.
- 1.718 million barrels allocated daily to Nigeria
Following the explosion at the Trinity Spirit Floating Production, Storage, and Offloading (FPSO), managed by SEPCOL, at Ukpokiti Terminal near Escravos, Delta State, experts in the oil and gas sector have allayed fears that the country may not meet its production output quota. The Organization of Petroleum Exporting Countries+ (OPEC+) allocated the country 1.718 million barrels per day of production output last week.
The reason is that the vessel, which can produce about 22,000 barrels of oil daily, inject up to 40,000 barrels of water per day, and store two million barrels of oil, has not been pumping crude oil from the OML 108 since 2019 and has been used for storage. According to a statement obtained by The Nation over the weekend from Senior Analyst Zhenying Wu of Rystad Energy, an independent energy research and business intelligence firm based in Oslo, Norway, the Trinity Spirit explosion will not affect the country’s oil production. As a result, it will not immediately impact oil prices because the unit was not producing at the explosion.
Nonetheless, he stated that the primary concern is the potential environmental impact, which will be difficult to quantify until the dust settles and the aftermath is assessed.