Pipeline vandalism and unabated illegal bunkering in Nigeria continues to afflict majors and independent producers in the Niger Delta, with Shell alone reporting 39 incidents between January and April this year, writes Barry Morgan.

Some 90% of spillages at onshore assets operated by Shell were caused by “third-party interference”, according to briefing notes release by the supermajor this week.

The notes said: “Security remains a high priority as a result of theft and criminality with third-party interference the main cause of pollution; facilities operated by indigenous and international oil companies continue to be attacked, disrupting production, impacting revenue and the supply of gas to the power sector.”

Nigeria reportedly loses between 100,000 and 400,000 barrels per day of oil to illegal bunkering, with operations continually disturbed by acts of sabotage, kidnapping, and onshore and offshore piracy.

However, Shell said: “There has been no damage to infrastructure by militant activity since November 2016.” In the latest incident, indigenous player Aiteo Eastern E&P again had to shut down its Nembe Creek Trunkline supplying Bonny Light crude to Shell’s export terminal at Port Harcourt, just days after earlier repairs were completed, reporting two new leaks near the Awoba manifold.

While Nigeria's 2019 budget targets oil production of 2.3 million barrels per day at a price of $60 per barrel, the country produced just 1.95 million bpd last month.

Even so, this figure represented a 14-month high.

Weekly

Incidents continue to take toll on Nigeria output