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
Manasseh
Stolen Kenyan livestock recovered...

Herds of livestock stolen from herders in Ambalo grazing area, Sololo sub-county in Marsabit County have been recovered in neighbouring Ethiopia.  Read more...

Submitted by
Gabriel Ngallah
Raila to grace Bursary disburseme...

CORD leader Raila Odinga is expected at the Coast at the weekend to grace a bursary disbursement function organized by Mombasa County government.  Read more...

Submitted by
Manasseh
Agha Khan signs healthcare deal w...

The Agha Khan University Hospital has signed a Memorandum of Understanding (MOU) with Murang’a County Government on improving healthcare services in the County.  Read more...

Submitted by
Phillip Nyalenda
Neptune Teezeh working on a singl...

Neptune Teezeh is a fast-rising musician in Kenya. He dropped "Nikiwa nawe" single and followed it with the official music video and both were a hit.  Read more...

Submitted by
Gabriel Ngallah
Police are detaining a man for us...

Police at Mtwapa in Kilifi County are detaining a 35 year old man and six underage girls for indulging in group sex. Read more...

Submitted by
Nyambura Mwirikia
4 things you should never do afte...

4 things you should never do after a break-up Read more...