Explosion Rocks Shell Pipeline
By Chika Amanze-Nwachuku in Lagos and Omon-Julius Onabu in Warri, 03.04.2009
Crude oil export has suffered a major set back following an explosion that rocked the 24-inch Trans-Escravos Pipeline (TEP) belonging to the Shell Petroleum Development and Production Company (SPDC).
The damaged pipeline conveys crude oil to the flow station where it (oil) is separated from gas and water before the oil is sent to the export terminal.
THISDAY learnt that the incident has forced the company to shut down its flow stations which receive feed crude, a development which has adversely affected crude export.
However a company source said the blasts are suspected to be an act of sabotage, caused some punctures to the TEP. He confirmed that a number of facilities had been shut down to minimise damage to the environment.
It could not be ascertained at press time, whether there was any loss of life or whether some staff sustained injuries, but THISDAY learnt that a Joint Investigation Team has commenced investigation into the matter.
It was learnt that the attackers, believed to be militants, used explosive materials to blow up parts of the SPDC’s crude export channels in the off-shore pipeline.
The special security Joint Task force (JTF) spokesman, Col Rabe Abubukar, when contacted yesterday, said the outfit was “unaware” of any new attack on SPDC facility, but THISDAY learnt that the oil giant had already visited the scene of the incident and taken measures to remedy the situation.
A Shell spokesman, Precious Okolobo, confirmed the incident last night, but declined further comments on ground that the investigation would reveal the cause of the blasts.
He also did not disclose the volume of oil shut-in or whether the company would declare a “force majeure”, which would officially allow it default on supplies to its international customers.
“SPDC can confirm that there have been explosions on the 24-inch Trans Escravos Pileline (TEP) in Delta State. The incident was first reported by surveillance personnel on Saturday February 28 and later confirmed during an assessment visit to the area. The authorities have been notified of the incident and joint investigation is being mobilised,” he said.
Escravos, which is located in Warri South L.G.A. of Delta State, plays host to two major trans national oil companies Shell and Chevron. Shell has three onshore flow stations in the area (Sagara, Otumara and Ogidigben flow stations), while Chevron has its flow stations offshore.
Shell had last month declared force majeure on its Nigerian Bonny oil shipments citing the heightened insecurity in the Niger Delta region.
Okolobo said the action was prompted by the company’s inability to meet contractual obligation owing to the militancy in the area.
He explained that the force majeure was declared due to logistics challenges related to the security situation in the area.
"It will affect the remainder of February and perhaps March offtakes with some deferred to April," he said.
A previous force majeure by the company, covering liquefied natural gas (LNG) shipments from Bonny is still in force.
A previous explosion on the SPDC 24-inche Amukpe left six of its contract staff dead. The contract staff worked for a contractor employed by SPDC at the SPDC trunk line in Delta State which supplies crude oil to the Forcados Export Terminal.
The company had shut down all its flow stations receiving feed crude as a result of the incident.
The 18 contract staff and an SPDC supervisor were said to be working at a “leak repair work-site” when the explosion which resulted in an inferno occurred.
The Movement for the Emancipation of the Niger Delta (MEND) on Saturday threatened to sabotage the multi-billion dollar Trans-Saharan gas pipeline project, a scheme that has attracted the Europoean Union (EU) and Russian energy majors.
The group said the project, which is expected to deliver first gas in 2015 runs contrary to the wish of indigenous oil-producing communities in the Niger Delta region.
