Shell shuts oil pipeline six days after reopening, production drops by 150,000 barrels

Six days after it reopened the Trans Niger Pipeline, which was shut down following a fire incident in June, Shell Petroleum Development Company of Nigeria Limited has again shut the pipeline due to a leak.

As a result, 150,000 barrels per day of oil has been deferred with grave implication for the Federal Government, which will face reduced oil revenue for as long as the pipeline remains shut.

Announcing that oil production in the country had again dropped by 150,000bpd, SPDC also confirmed in a statement on Thursday that a leak on the Trans Niger Pipeline at the Bomu-Bony section in Owokiri.

The oil major, however, said it was not sure of the cause of the leak as well as the amount of crude already spilled.

It further reiterated that the TNP had been a target of theft in recent times.

The statement said, “SPDC operated Joint Venture today (Wednesday) shut in the 24-inch Trans Niger Pipeline as a result of a confirmed leak on this line at the Bomu-Bonny section at Owokiri.

“With the 28-inch TNP already shut in for removal of illegal oil theft connections, a total of about 150,000 barrels per day of oil has been deferred.

“Details of this latest incident, including cause and size of spill, are unclear at the moment, but the TNP has been variously targeted by crude oil thieves in recent months and shut down several times to enable the removal of theft points.” Read more

Image culled from: http://www.columbiatechnologies.com/wp-content/uploads/2011/11/Pipeline-Facility.jpg

About Author: Integrity Org

Integrity Organization is committed is an anti-corruption, research and advocacy organization. Its activities are centered on the aim to reduce the tolerance for corruption in Nigeria.

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