Worldbulletin News

Worldbulletin News Worldbulletin News Portal


23:35, 25 July 2014 Friday
10:08, 04 March 2013 Monday

  • Share
Shell Nigeria 'may shut down oil pipeline'

Flowstations on the pipeline were shut down three times between Feb. 22 and Feb. 25 due to thefts, with each incident deferring 150,000 bpd of production, Shell said in a statement.

World Bulletin / News Desk

Royal Dutch Shell may be forced to shut down "completely" its 150,000 barrel per day Nembe Creek oil pipeline in Nigeria due to persistent thefts, the company's local unit said on Monday.

The Nembe trunkline is one the most important production routes for Africa's top crude oil exporter, feeding the benchmark Bonny Light export terminal. The pipeline was replaced in 2010 at a cost of $1.1 billion, Shell says.

But criminal gangs tap into exposed pipelines in the winding creeks and waterways in the Niger Delta. Some of the crude is refined locally but the majority is transferred onto larger ships offshore and sold internationally.

Oil theft also has a devastating environmental impact, destroying fishing communities and poisoning water used for drinking and bathing in parts the Niger Delta.

Flowstations on the pipeline were shut down three times between Feb. 22 and Feb. 25 due to thefts, with each incident deferring 150,000 bpd of production, Shell said in a statement.

"This is really getting to the crunch I must say," Shell Nigeria's managing director Mutiu Sunmonu said in a statement.

"It is getting to the crunch that rather than allow people to continue to attack my pipeline and devastate the environment, I may actually consider shutting in the pipeline completely.

"...The situation in the last few weeks is unprecedented. The volume being stolen is the highest in the last three years; over 60,000 bpd from Shell alone," he said.



Legal Notice: Copyright, trade marks and other intellectual property rights in this website can not be reproduced without the prior permission.

  • Share


Most Read



Yandex.Metrica