Shell's Escravos pipeline suffers explosions

Uchenna Izundu
OGJ International Editor

LONDON, Mar. 3 -- Shell Petroleum Development Co. (SPDC) reported that its trans-Escravos oil pipeline in Nigeria's Delta state has been breached in three places.

A company spokesperson told OGJ that it had shut-in oil installations in the Niger Delta to minimize potential damage to the environment. No details were given on how much had been lost at the pipeline.

"It was first reported on [Feb. 28] and confirmed during an assessment on the ground; the authorities have been notified," she said.

There have been explosions on the 24-in. line, which transports oil from the fields in the western Niger Delta to the Escravos export terminal.

SPDC is carrying out an investigation with the authorities and local communities to confirm the cause and the extent of the damage. "The incident was first reported by surveillance personnel on [Feb. 28]," she added.

The company declined to say how long the investigation would take or when the pipeline would be restored.

Last month SPDC called force majeure on oil shipments through March from its main Nigerian terminal, Bonny, following attacks by militants on key facilities. The company said it had logistical challenges related to the security situation in the area.

SPDC hopes to restore gas production within the coming weeks to the Nigeria LNG liquefaction complex via its Soku gas plant after its nearby pipeline was sabotaged in November. The action forced the company to declare force majeure and it had lost 1.6 million tonnes of LNG since the plant's closure. The Nigerian government has missed out on $180 million a month, according to Ann Pickard, SPDC's regional executive vice-president for Africa, at a recent industry conference in Abuja. She added that thieves had established 101 illegal connections on the condensate pipelines around Soku in December alone.

"The plant could not be operated safely with that amount of condensate theft," Pickard said.

The security problems have driven white-collar workers in Nigeria's oil unions to give the government a 21 day warning to improve the issue or face a 3 day strike—its second threat in less than a month.

Contact Uchenna Izundu at [email protected].