Chevron suspends pipeline use in Nigeria as ExxonMobil, Shell resume operations

Dec. 27, 2010
Chevron suspended operations of the Dibi-Abiteye oil pipeline in Nigeria's Niger Delta in an effort to minimize potential environmental damage while investigating damage caused to the line after militant attacks on oil flow stations.

Eric Watkins
Oil Diplomacy Editor

Chevron suspended operations of the Dibi-Abiteye oil pipeline in Nigeria's Niger Delta in an effort to minimize potential environmental damage while investigating damage caused to the line after militant attacks on oil flow stations.

The line feeds the 123,000 b/d Escravos oil export stream, according to loading programs. The Niger Delta Liberation Force (NDLF), a militant faction in Nigeria's oil-producing wetlands region, claimed attacks on three oil flow stations operated by Chevron and Eni SPA.

"We have suspended production to minimize environmental impact and have informed relevant government agencies and other stakeholders," Chevron said. "The breach is being investigated and we are reviewing our operations."

The attack on Chevron and Eni coincided with separate announcements by Royal Dutch Shell PLC and ExxonMobil Corp. that they also had resumed operations at sites earlier attacked by militants.

ExxonMobil resumed production of 15,000 b/d of Nigerian Oso condensate that was shut in following a militant raid on an offshore platform last month (OGJ, Nov. 22, 2010).

"We have restarted 15,000 b/d of condensate from the Oso field. No firm time for restart of Natural Gas Liquids (NGL) production is available at this time," Exxon said of Oso, which produces 75,000 b/d from eight platforms.

Nigeria's main militant group, the Movement for the Emancipation of the Niger Delta (MEND), claimed responsibility for the November attack in which eight Exxon workers were reported kidnapped and later rescued.

Shell also resumed shipments of oil from a key export terminal in southern Nigeria after repairing a leak on the Trans-Niger pipeline which feeds the terminal.

"The force majeure on Bonny Light exports was lifted effective Dec. 14 following the repairs of the supply pipeline and stabilization of production," said Shell, which declared force majeure on Nov. 19.

Earlier this year, the Shell Petroleum Development Co. (SPDC) of Nigeria-operated Joint Venture raised an alarm over the recent increase in sabotage attacks on its pipelines around Bonny in Rivers State.

During Aug. 1-12, SPDC recorded three separate sabotage incidents on its Cawthorne Channel-Bonny and Alakiri-Bonny pipelines, where suspected crude thieves drilled holes or inflicted hacksaw cuts to siphon oil.

"Last year, 98% of the oil spilled from SPDC operations was caused by sabotage," said Babs Omotowa , Shell vice-president for health, safety, and environment and infrastructure and logistics in Africa.

Nigerian militants claim to be fighting against the region's endemic poverty and pollution which they say is caused by 50 years of oil production. The militant groups typically blame the Nigerian National Petroleum Corp. (NNPC)-and its IOC partners-for failing to address the region's problems.

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