NationalMirror Again, Shell suspends 150,000bpd production due to oil theft UDEME AKPAN June 21, 2013 The Shell Petroleum Development Company of Nigeria Limited, SPDC, has shut the Trans Niger Pipeline, TNP, following an explosion and fire at a crude theft point on a section of the facility at Bodo West in Ogoniland in Rivers State. The company, which is the operator of NNPC/ SPDC/TOTAL/NAOC Joint Venture, has also suspended the production of about 150,000 barrels of oil worth $16.3m or N2.57bn per day because of the incident. The Corporate Media Relations Manager of the firm, Mr. Tony Okonedo, who confirmed the development in a statement, stated that prior to the incident, SPDC had shut down the 28” TNP to remove crude theft connections and has now closed the 24” TNP as a precautionary response to the fire. “This means that the entire TNP system, comprising the 28” and 24” pipelines has been shut-in. “The 24” TNP will be reopened when it is safe to do so, while the 28” TNP will remain shut-in until the fire has been extinguished, and investigation and damage assessment completed,” he said. Okonedo quoted the SPDC Managing Director, Mr. Mutiu Sunmonu, as stating that the incident was another sad reminder of the tragic consequences of crude oil theft. Part of the statement reads: “Unknown persons continued to reconnect illegal bunkering hoses at Bodo West even as our pipeline team was 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.” The firm, which remains the nation’s largest producer, has recorded many cases of oil theft in recent times that culminated in the shutdown of some pipelines, thus affecting export and revenue generation. The Nigerian National Petroleum Corporation, NNPC, explained that this had resulted in losses, amounting to about N191bn for the Federal Government. SPDC Group General Manager, Public Affairs, Mrs. Tumini Green, had attributed the drop to incessant crude oil theft and vandalism along the major pipelines within the Niger Delta. Daily crude oil production during the period fluctuated between 2.1 and 2.3 million barrels per day (mbpd) compared with the projected estimate of 2.48mbpd in the early part of the year. “Expectedly, this fall between actual production and forecast in first quarter 2013 has resulted in a drop in crude oil revenue of about $1.23bn (N191bn) that should have accrued to the Federation Account,” she had explained. SPDC had stated in its recent briefing notes that the Niger Delta continues to be a challenging place to operate for many reasons. It maintained that there is a fundamental lack of basic infrastructure in many areas, with poverty, lack of employment opportunities, widespread criminality and other factors all contributing to the social and economic crisis in the region. “Criminality has expressed itself in many forms over the years attacks on facilities, kidnapping, militancy and, most worrisome in recent years, crude oil theft and illegal refining,” it said. It stated that in 2012, there were over 80 reported incidents of crude oil theft from the facilities of SPDC, accompanied by vandalism, spills and fire. The firm stated that the enabling environment helped by the amnesty resulted in a significant increase in Nigeria’s oil and gas production and provided better access for operations and maintenance of assets.
Posted on: Fri, 21 Jun 2013 09:09:30 +0000
Trending Topics
Recently Viewed Topics
© 2015