Shell Fears Reopening Twice-Bombed Nigerian Pipeline

  • Shell sidestepped from reopening Forcados pipeline
  • Trans Forcados Pipeline transports 400,000 barrels to terminal
  • Militants dive underwater, plant bomb and destroyed pipeline earlier

Major oil giants operating in Nigeria, Royal Dutch Shell is skeptical about reopening a pipeline in the Niger Delta where local separatist group might re-bomb the facility for a third consecutively according to reports from the region.

Forcados Pipeline exploded in Niger Delta Nigeria

The pipeline which is a Trans Forcados Pipeline that transports 400,000 barrels to the Forcados export terminal daily has been shutdown for about three weeks in all last year, according to risk analysis published by SBM intelligence over the weekend.

In the past, militants swim underwater to install bombs close to the section of the pipeline in the Atlantic Ocean which they intend to explode. Shell promptly brought in underwater engineers to repair the pipeline in an act which defies the militants and the strongest militant move till date.

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Barely forty-eight hours after engineers spend gruesome seven months of repair leading to some $3 billion loss, the group bombed the Trans Forcados again.

Nigeria wants Royal Dutch Shell to reopen a major export pipeline in the Niger Delta but the oil major wants better protection first, to avoid having it blown up yet again,” the SBM Intelligence report said, quoting industry sources and other anonymous speakers.

Forcados Pipeline exploded in Niger Delta Nigeria

Senior vice president for West Africa at Teneo Intelligence, Manji Cheto, last month told Bloomberg  that Nigeria has roughly 500,000 bpd offline because of security issues.

During the months February, Nigeria’s Oil Minister Ibe Kachikwu announced between $50 billion and $100 billion in lost oil revenues tied to increasing militant attacks on oil pipelines and related facilities in the Niger River Delta.

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Major militants groups like the Niger Delta Avengers and others have demanded oil revenues exploited from the Delta be used to develop and benefit the lives of Nigerians inhabiting the fuel’s original place of oil extraction – the Niger Delta.

It will be recalled last month that Nigeria’s Vice President Yemi Osinbajo visited the Niger Delta, an attempt to foster peace and stability to the rich oil-producing region, however, progress hasn’t result from the efforts so far after his presence in the region.

 

Source: www.stingged.com/DCMA/Oilprice

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