Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.

 

Shell Nigeria 'may shut down oil pipeline'

05 March 2013, 07:32

Abuja - 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 of 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 $1.1bn, 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 February 22 and February 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

Nigerian Oil Minister Diezani Alison-Madueke said last month that the thefts were the work of international crime syndicates and she has requested help from Britain to tackle the problem.

Security experts say they believe Nigerian officials must be complicit in the business considering the scale of theft, which some oil companies have estimated at around 150 000 bpd across the whole of the industry.

- Reuters

NEXT ON NEWS24 KENYAX

Read News24’s Comments Policy

Comment on this story
0 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
William Korir
Victory for Ruto as ICC throws ou...

Deputy President William Ruto has won big as the ICC appeals chamber rejects use of recanted evidence in the case against DP Ruto and Joshua arap Sang. Read more...

Submitted by
William Korir
Colleagues eulogize KDF soldier k...

Kevin Ouma died in Al Adde Somalia in an attack by Al Shabaab militants on his KDF camp. His colleagues say he was a brilliant man and passionate soldier. Read more...

Submitted by
William Korir
Why Sossion does not want perform...

KNUT boss Wilson Sossion has promised that teachers will go on strike if they are forced to sign performance contracts. Read more...

Submitted by
William Korir
Munya turns down Uhuru's Jubilee ...

Meru Governor Peter Munya has told President Uhuru Kenyatta he does not wish to join the Jubilee Party. Read more...

Submitted by
Victor Tinto
Why Nairobi church elder committe...

A church elder and businessman committed suicide in Nairobi but why? Read more...

Submitted by
Manasseh
Pickpocket nabbed at Kiganjo Poli...

A suspected pickpocket was Friday arrested at Kiganjo Police Training College during a pass-out parade which was presided over by President Uhuru Kenyatta. Read more...