Royal Dutch Shell plc has closed-in the Trans Niger Pipeline (TNP) in Nigeria after an oil theft caused an explosion and fire, the company said. The pipeline is located in the Ogoniland area of the Niger Delta.
The incident has affected its entire TNP system and compromised the 150,000 barrel per day capacity line, the company stated in a release. The line had been closed-in Oct. 9 due to a precautionary response to last week’s spills in the area, but the 28-inch TNP was reopened shortly after investigations established that the leaks were on the 24-inch line only, Shell Petroleum Development Company of Nigeria (SPDC) reported.
The company then decided to shut-in the 28-inch TNP line due to the fire at Patrick Waterside. The fires have been extinguished but the line will remain closed until a thorough investigation is conducted.
SPDC will defer the 150,000 barrels of oil per day.
Investigations into the incident revealed that holes had been drilled on the 24-inch TNP at B-Dere, reported the company. SPDC will initiate clean-up and remediation, as well as provide relief materials and compensate those who may be impacted.
SPDC, Nigeria’s largest acreage holder in the country, produces 39 percent of the nation’s oil. The company owns more than 3,728 miles of pipelines and flowlines, as well as 1,000 producing wells. SPDC is the operator of a Joint Venture Agreement involving the Nigerian National Petroleum Corporation (NNPC), which holds 55 percent, Shell holds 30 percent, Total Exploration and Production Nigeria Limited (TEPNG)holds 10 percent and Nigerian Agip Oil Company limited (NAOC) holds 5 percent.
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