Shell Shuts Bonny Flow Station …Raises Alarm Over Increasing Oil Theft

Barely three days after Shell Petroleum Development Company (SPDC) shut the Trans Niger Pipeline (TNP) deferring more than 150,000 barrels of oil per day, the company has shut down the Bonny Flow Station.
With the shutting of the Bonny flow station, an additional 150,000 barrels of oil per day has been deferred, bringing the total amount of oil deferment to 300,000 barrels per day.
Declaring the force majeure on the Bonny light exports, Shell again raised an alarm over the increasing crude oil  theft which it said has caused repeated closures of the two key pipelines this year.
It would be recalled that the TNP which pumps 150,000 barrels of oil per day from B-Dere, Nonwa-Tai and Bodo West to Bonny Export terminal was shut following reports of new leaks, arising from oil theft, barely 10 days after the line was repaired
An investigation visit conducted today, comprising regulators, SPDC and members of the community discovered that the spill at B-Dere was caused by unknown persons who drilled holes on the line. Similar investigation visits are being organised for Nonwa – Tai and Bodo West.
The entire TNP system, comprising the 24-inch and 28-inch has been closed down at least five times since early July this year due to multiple leaks from crude theft connections. The downstream section of Nembe Creek Trunkline (NCTL) between San Barth and Bonny was reopened on August 6 after the removal of 60 crude theft points, but was shut again in September with the discovery of seven additional connections. Repair of the line is progressing. A total of 189 crude theft points have been repaired on the TNP and NCTL between January and September this year, according to a statement by the company
“ SPDC Managing Director and Country Chair, Shell Companies in Nigeria, Mutiu Sunmonu said. “We find it difficult to safely operate our pipelines without having to shut them frequently to prevent leaks from illegal connections impacting the environment. Ironically, it appears the crude thieves use repair windows to prepare and quickly launch fresh illegal connections when we restart production.
“While SPDC continues to play its part in combating crude oil theft by amongst other things, increasing surveillance of pipelines and organising daily helicopter over-flights of pipeline routes, the experience of the past few months requires more concerted efforts by all stakeholders, including Government and communities, to address what is turning out to be a dangerous development in the Niger Delta,” the statement added.
SPDC Ltd. operates the SPDC joint venture on behalf of its partners, the NNPC (55%), Total (10%) and ENI (5%) with Shell’s share being 30%.

President Goodluck Jonathan (left), arriving AU Secretariat for the extra-ordinary session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa last Saturday. With him is the Nigerian Ambassador to Ethiopia, Amb. Paul Lolo.