Shell Shuts in 150,000bpd of Crude Oil

 Shell Headquarters

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Nigeria’s crude oil export has suffered a major setback as Shell Petroleum Development Company of Nigeria (SPDC) on Wednesday shut the Trans-Niger Pipeline (TNP), following an explosion and fire at a crude theft point on the 28-inch section of the facility at Bodo West in Ogoniland of Rivers State.

The TNP is one of Shell’s two major pipelines in the eastern Niger Delta that transport crude oil from Shell flowstations and other third party’s facilities to Bonny export terminal for shipments.

Shell’s Corporate Media Relations Manager, Mr. Tony Okonedo, said in a statement yesterday, that prior to the incident, the company had shut down the 28-inch TNP to remove crude theft connections, adding that it had now closed the 24-inch TNP as a precautionary response to the fire.

“This means that the entire TNP system, comprising the 28-inch and 24-inch pipelines have been shut-in. The 24-inch TNP will be reopened when it is safe to do so, while the 28-inch TNP will remain shut-in until the fire has been extinguished, and investigation and damage assessment completed,” he said.

Okonedo also confirmed that about 150,000 barrels of oil per day was deferred from the closure of TNP.

The Managing Director and Country Chair Shell Companies in Nigeria, Mr. Mutiu Sunmonu, said the development was another sad reminder of the tragic consequences of crude oil theft.

“Unknown persons continued to reconnect illegal bunkering hoses at Bodo West even as our pipeline team were removing crude theft points. It was therefore not surprising that the fire occurred from the continuing illegal bunkering even as a previous crude oil theft point was being repaired by the team. So far, there is practically no spill from this event as the oil is burning off. What is visible in the water is from an earlier oil spill, which was also as a result of oil theft. The explosion also triggered a fire on a nearby barge. Crude theft continues to pose significant challenges to people, the environment and the local and national economy, and all stakeholders must work together to stop this criminal activity,” Sunmonu added.

The increasing theft of crude became so alarming early this year that it forced Shell and the Nigerian Agip Oil Company (NAOC)  to  suspend oil exports from their major oil fields in the eastern Niger Delta.

Both companies shut in a combined volume of 190,000 barrels per day of crude oil production in March.

Shell had shut the Nembe Creek Trunkline, losing 150,000 barrels of crude export since April 15.

Also, Italian oil firm Eni, which operates as NAOC, also suspended operations on March 22, and subsequently declared ‘force majeure’ on March 23.

Eni produced about 40,000 barrels of crude oil equivalent daily from the shut facilities.