An oil pipeline capable of hauling 180,000 barrels a day across Nigeria has ceased transporting crude since mid-June due to theft, according to a source.
The Trans-Niger Pipeline, TNP, has yet to be formally shut, said the source, who prefers being anonymous because the information has not been made public.
The link’s capacity is about 15% of Nigeria’s most recent average daily output, according to Bloomberg calculations.
Nigeria, Africa’s largest oil producer and a member of the Organization of Petroleum Exporting Countries, has tried to stamp out sabotage on its pipeline network in recent years. Oil theft remains a chronic problem for the midstream system known as the TNP.
Producers received as little as 5% of crude volumes pumped through the pipeline between October 2021 and February, an industry union reported earlier this year.
It reflects a larger issue for Nigeria, which is facing shrinking investment and hasn’t been able to meet its OPEC+ oil-production quota in order to benefit from a surge in prices.
The TNP was illegally tapped in about 150 places, the Petroleum and Natural Gas Senior Staff Association of Nigeria said in March when local government checked some of the areas where the theft occurred.
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Protest: Commissioner Urges Dialogue Over PIA Implementation
Delta State Commissioner for Oil and Gas, Olorogun Vincent Oyibode, has called on the protesting host communities to Otumara Flow Station of the Shell Petroleum Development Commission (SPDC) in Warri South West Local Government Area to engage in a friendly dialogue with the multi-national oil firm over the implementation of the Petroleum Industry Act (PIA).
Oyibode, who made the call while briefing journalists on the outcome of his visit to Otumara Flow Station and the host communities, in Warri, at the weekend, urged the protesting communities of Ugborodo, Deghele and Ugboegungun not to shut down the operations of the SPDC.
According to the commissioner, “the 20,000 barrels per day SPDC facility in Otumara is of great economic importance to the Federal and Delta State Government”.
He said the state government would continue to intervene where and when necessary just as he implored the host communities and SPDC to explore the benefits of dialogue in resolving the disagreement.
Oyibode also stated that the Governor Sheriff Oborevwori-led government was determined to provide an enabling environment for international oil companies and investors in the State.
The commissioner said, “the management team, Ministry of Oil and Gas visited the protestants at the Otumara community where the Flow Station is sited.
“We held discussions with leaders who expressed their concerns. We also advised that the internal wranglings within critical stakeholders over the name for the HCDT should not lead to shutting down of Otumara Flow Station and SPDC’s operations”.
The commissioner insisted that the disagreement between the host communities to Otumara Flow Station and SPDC which has to do with setting up a Host Community Development Trust was a matter that can be resolved amicably, adding that “the Delta State Government is on top of the issue.
“We appeal to the host communities of Ugborodo, Ugboegungun, and Deghele not to shut down the operations at the Otumara Flow Station, while the negotiations continue for a win-win resolution”.
It would be recalled that the protesting communities had earlier called on the SPDC to visit the host communities in line with the PIA 2021 provisíons which empowers communities to set up a Host Community Development Trust Fund (HCDTF).
However, following an alleged illegality of the multinational against the spirit of the PIA by refusing to engage the three communities of the Otumara Flow Station in the Fund, it ignited a protest and upon the expiration of the 48- hour ultimatum gained entry into the facility with the threat of a total shutdown.
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