Blast Disrupts Key Nigerian Oil Pipeline Following Shell Stake Sale

A blast has halted the Trans Niger Delta Pipeline in Nigeria, just a week after Shell sold its stake to Renaissance Africa Energy Holdings. The incident has prompted an investigation as TNP is crucial for oil exports, contributing about 15% of Nigeria’s total. Political tensions and longstanding operational challenges further complicate the situation.

A significant halt has occurred in a key Nigerian oil pipeline, specifically the Trans Niger Delta Pipeline (TNP), following a blast. This incident comes just a week after Shell Plc sold its stake in the pipeline to Renaissance Africa Energy Holdings, which subsequently renamed the entity to Renaissance Africa Energy Company Ltd. According to the Rivers State Police Command, the operator halted operations due to the incident that affected the pipeline crucial for Nigeria’s oil exports.

Renaissance Africa has initiated an investigation into the incident affecting TNP, which is vital for the Bonny export terminal, contributing approximately 15% of Nigeria’s oil export flows. A spokesperson for Renaissance stated that the investigation will be conducted in conjunction with government agencies. The cause of the explosion remains unclear, but Nigeria’s oil industry consistently faces challenges, including sabotage and vandalism.

The TNP, located in Rivers State, Nigeria’s main oil-producing region, is currently under scrutiny as tensions rise due to political actions within the local government. Reports indicate that local legislators served an impeachment notice on the governor and his deputy amidst ongoing issues. Additionally, a Supreme Court ruling previously barred central bank fund distributions to the state.

Local media, including the Lagos-based Vanguard newspaper, has reported that the pipeline explosion occurred in the Gokana area and that the affected section has experienced fire. Shell’s decision to divest its onshore assets in the Niger Delta to Renaissance is part of a broader trend, as major oil companies exit the region facing operational difficulties such as vandalism and aging infrastructure. The police discovered the incident during a routine patrol, leading to immediate asset protection measures by the operator.

The incident at the Trans Niger Delta Pipeline underscores persistent issues in Nigeria’s oil sector, particularly relating to sabotage and political unrest. Following Shell’s recent divestment, the pipeline’s operations have been significantly disrupted due to this blast. The investigation by Renaissance Africa demonstrates the ongoing struggle to maintain operational integrity in an area rife with challenges. Overall, the oil supply chain within the region faces significant vulnerabilities that require urgent attention and resolution.

Original Source: financialpost.com