Shell Shuts-In Nigeria Pipeline to Nembe Creek Flow Station

IBADAN, Nigeria - Royal Dutch Shell PLC's Nigerian unit has closed off a pipeline into the Nembe Creek-2 flow station after a leak was discovered two days ago, a company spokesman said Friday.

The leak was observed on the flowline Wednesday, and booms quickly deplored to stop the spread of any spilled oil, said Precious Okolobo, a spokesman for Shell Petroleum Development Co. of Nigeria Ltd., the Anglo-Dutch firm's local joint venture.

Mr. Okolobo wasn't able to identify the cause of the current leak or give an indication of when the flow line would be back in operation but said the company was stopping the spread of any spilled oil.

"The spilled oil is contained within the flowline right-of-way, and there is no impact on the environment," he said.

SPDC in May shut down the Nembe Creek Trunkline in Nigeria's southern Bayelsa state because of alleged crude thefts and declared a force majeure on the export of Bonny Light crude.

He said a joint investigation team will visit the site to determine the cause of the leak.

The company says that it undertakes to clean-up all oil spills in the region, no matter the cause. Spill incidents are addressed by joint investigating teams that comprise members of the impacted communities, the Nigerian government and the SPDC, according to Shell's website.

Shell owns 30% of SPDC and holds operatorship, while Nigeria's National Petroleum Corp. owns 55%, Total SA has 10% and Nigerian Agip Oil Co. Ltd. has 5%.  

Copyright (c) 2012 Dow Jones & Company, Inc.


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