Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Shell shuts Nigeria pipeline carrying Bonny Light crude

Published 24/11/2014, 15:03
© Reuters. A logo for Shell is seen on a garage forecourt in central London
SHEL
-

By Julia Payne

ABUJA (Reuters) - Nigeria's oil exports were disrupted after Shell's (L:RDSa) local unit shut a pipeline that carries a key grade after it discovered a leak on Saturday, the company said on Monday.

The pipeline carries one of Nigeria's main export grades, Bonny Light . About six cargoes of the crude are exported each month, or around 180,000-200,000 barrels per day.

A Shell spokeswoman in London said that force majeure had not been declared on the grade.

"SPDC is investigating the source of a leak at Okolo Launch in Eastern Niger Delta which occurred near the 24-inch and the 28-inch TNP (Trans-Niger Pipeline)," a spokesman at Shell's Nigeria unit said in an e-mailed statement.

"The leak occurred near where one of our contractors was preparing to remove crude theft connections on the line...On noticing the leak on November 22, we deployed booms and also shut in the 28-inch TNP."

The 24-inch pipeline has been shut since Oct. 18 last year for repair and integrity checks, the spokesman added.

Nigeria's oil industry suffers from rampant oil theft. A report by a national conference convened by President Goodluck Jonathan in March, said the country was losing an estimated $35 million (22 million pounds) a day to oil theft.

In March this year, Shell said it lost nearly $1 billion in 2013 through theft and various disruptions to its Nigerian oil and gas operations.

© Reuters. A logo for Shell is seen on a garage forecourt in central London

The oil major has since sold some of its onshore producing fields in part due to these problems.

(Additional reporting by Tife Owolabi in Yenagoa and Simon Falush in London; editing by Jason Neely and Susan Thomas)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.