Blast Halts Key Nigeria Oil Pipeline Following Shell’s Stake Sale

A blast along the Trans Niger Delta Pipeline in Nigeria, which Shell recently divested, has halted oil transport operations. The pipeline, acquired by Renaissance Africa Energy, is critical for the Bonny export terminal and handles 15% of Nigeria’s oil exports. The incident, indicative of longstanding issues with sabotage and infrastructure, coincides with political tensions in Rivers state.

In Nigeria, an oil pipeline temporarily ceased operations after an incident, as confirmed by local law enforcement. Recently, Shell Plc divested its stake in the Trans Niger Delta Pipeline (TNP), which was subsequently acquired by Renaissance Africa Energy Holdings, renaming the operation as Renaissance Africa Energy Company Ltd.

Following the explosion along the Trans-Niger Pipeline, which is essential for transporting oil to the Bonny export terminal, a joint investigation was initiated involving Renaissance and a government agency. This pipeline is responsible for approximately 15% of Nigeria’s oil export volumes, contributing significantly to the Bonny grade shipments.

While the cause of the reported explosion remains unclear, persistent sabotage and vandalism have affected Nigeria’s petroleum assets. Tensions have also arisen in Rivers state, where local legislators recently attempted to impeach the governor and deputy amid allegations of financial disbursement issues involving the central bank.

According to reports, an explosion occurred in the Gokana area, igniting the affected section of the pipeline. Shell’s decision to sell its onshore assets in the Niger Delta, made in January, follows a trend as other major oil companies exit the region due to challenges such as infrastructure deterioration and ongoing criminal activities. The police became aware of the incident during a routine patrol, and the operator promptly halted operations once notified.

The recent incident involving the Trans Niger Delta Pipeline underscores the challenges faced by Nigeria’s oil sector, including persistent sabotage and infrastructure issues. The sale of Shell’s stake to Renaissance Africa Energy Holdings marks a significant shift in the management of key petroleum infrastructure in the region. The ongoing instability in the political landscape of Rivers state adds another layer of complexity to the situation, necessitating further attention from both the government and energy stakeholders.

Original Source: financialpost.com