Explosion Halts Nigeria’s Trans Niger Pipeline Following Shell Sale

The Trans Niger Delta Pipeline in Nigeria was halted following an explosion incident, just a week after Shell Plc sold its stake to Renaissance Africa Energy Holdings. The event poses significant risks to Nigeria’s oil exports, amid ongoing issues of sabotage and political tensions in Rivers State. Investigations into the cause of the explosion are being conducted by the new operators in conjunction with local authorities.

A Nigerian oil pipeline, recently sold by Shell Plc, is currently halted due to an incident reported by local police. The Trans Niger Delta Pipeline (TNP), now under the operation of Renaissance Africa Energy Holdings, was acquired from Shell’s Nigerian subsidiary, Shell Petroleum Development Company (SPDC). The new entity has been renamed Renaissance Africa Energy Company Ltd.

The Rivers State Police Command announced that the halt was initiated after an explosion was reported by police during a routine patrol. Renaissance officials are conducting a joint investigation into this incident, which could significantly affect the pipeline’s operations. The TNP is crucial for approximately 15% of Nigeria’s oil exports, specifically for the Bonny grade shipments.

Speculation surrounds the cause of the blast, with the West African nation’s oil infrastructure historically susceptible to sabotage and vandalism. Tensions rise in Rivers State following a recent impeachment notice targeted at the state governor and deputy governor. Furthermore, local media report that Nigeria’s Supreme Court has prohibited the central bank from distributing funds to the state, adding complexity to the situation.

Reports from the Vanguard newspaper described the pipeline explosion in Gokana, with sections of the pipeline reportedly aflame, although the report did not disclose its sources. Shell previously sold its assets in the Niger Delta to a consortium of domestic companies largely due to the persistent issues of theft and aging infrastructure that have plagued the region. The police resumed operations only after the hazard was assessed once informed of the incident.

In summary, the Trans Niger Delta Pipeline has been halted following an explosion, shortly after Shell Plc divested its holdings in the region. The incident has raised concerns regarding the persistent threats of sabotage affecting Nigeria’s oil infrastructure. Investigative efforts are underway to ascertain the cause and impact of the blast, as tensions in the region escalate due to political developments.

Original Source: financialpost.com