Shell raises alarm over crude oil theft in Nigeria

Source:Xinhua Published: 2013-10-11 23:14:14

The Shell Petroleum Development Company (SPDC) of Nigeria on Friday expressed concerns over the increasing cases of organized theft of crude oil in the west African country.

The increasing trend of crude oil theft which has caused repeated closures of two key pipelines this year, resulting in deferment of up to 300,000 barrels of oil per day, the company said in a statement reaching Xinhua.

Shell on Wednesday shut down the Trans Niger Pipeline (TNP) in the southern Niger Delta region following reports of new leaks.

The incident came up barely 10 days after the line was repaired from crude oil theft incidents.

The oil company said a total of 189 crude theft points have been repaired on its two major pipelines between January and September this year.

Shell said force majeure was declared on Bonny Light exports on Thursday due to production deferment from leaks observed on the Trans Niger Pipeline (TNP) at B-Dere, Nonwa to Tai and Bodo West.

The force majeure means that the oil giant might not be able to honor its export contracts due to an unexpected or uncontrollable event.

The spill at B-Dere was caused by unknown persons who drilled holes on the line, the oil firm added.

"We are dealing with a social tragedy, an environmental crisis and a sad waste of resources," the statement quoted Mutiu Sunmonu, the organization's managing director as saying.

"We find it difficult to safely operate our pipelines without having to shut them frequently to prevent leaks from illegal connections impacting the environment. Ironically, it appears the crude thieves use repair windows to prepare and quickly launch fresh illegal connections when we restart production," he added.

The oil company recently expressed concerns over the increasing cases of organized theft of crude oil in the Niger Delta region of the country.

Shell has previously suggested that about 150,000 bpd of oil is lost to oil thieves and pipeline vandals.

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