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Shell Shuts in 25,000 Barrels Over Crude Theft

By on November 12, 2012

Mutiu-Sunmonu, Shell MD

The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has shut down the Imo River Trunk line in its Eastern operations after several crude theft points were found on it.

The production of 25,000 barrels of oil per day is postponed following the action by SPDC.

In a statement the company said, “SPDC had shut in the producing stations and isolated the line on 31st October on discovering the first set of leaking points, but an additional leak from the remaining oil in the pipeline occurred about eight days later, when unknown persons installed more crude theft connections, some of which have failed.”

The statement confirmed that about six crude theft points have so far been confirmed on the 12-inch trunk line, of which three have been repaired.

“There have been 26 spills in the Imo River area so far this year; 25 have been due to sabotage, spilling nearly 3000 barrels into the environment,’’ the statement added.

Shell’s Vice President for HSE & Corporate Affairs, Sub-Saharan Africa, Tony Attah said, “Ground visits showed that the oil had impacted rivers and other water bodies even as we have managed to deploy containment booms and are now starting to recover spilled crude. The evidence is clear for all to see, that crude theft is bad for Nigeria, bad for the people, bad for the environment and bad for our business.”

It is barely 24 hours after the last of such leaks was repaired at Biara, also in Ogoni land, the Imo River trunk line theft has been discovered. The Imo River Trunk line is part of the Trans Niger Pipeline, which suffered a similar fate at Mogho when unknown persons installed two crude theft valves.

Regrettably, SPDC shut down production in Imo River just August last year following incessant crude theft activities and resumed operations few months after the repairs.

The Chief Executive of French oil major Total yesterday said he would not deny a report that the firm was in talks to sell assets in Nigeria, worth about $2.4 billion, to China’s Sinopec.

“Yes we are discussing with certain buyers about selling certain assets in Nigeria,” said Total CEO Christophe de Margerie.

Speaking to reporters at an energy conference in Abu Dhabi , he said, “But it doesn’t mean we are scared and intend to start some kind of walking out of Nigeria…Total is happy to develop its projects in Nigeria.”

Companies operating in Nigeria, which is Africa’s largest crude oil exporter, have had a history of dealing with attacks on their pipelines and staff and with this year’s flood, production has really declined.

Total’s head of upstream told reporters at the same press conference in Abu Dhabi, said that with the flooding and theft activities, it was too soon to say when production will commence.

“The water is decreasing, but we still have some problems with the floods,” Yves-Loius Darricare, Total’s head of upstream, said. “I hope we will be able to restart production as soon as we can.”