Oil thieves cause SPDC to shut down 175,000bbl/d pipeline twice

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Shell Nigeria Gas (SNG) said it would continue to optimise its onshore footprint while investing in gas development in Nigeria. This came as the company commissioned an indigenous contractor, Gredor Nigeria Limited, to begin the construction of the gas pipeline infrastructure to deliver gas to the Nigeria Content Development and Monitoring Board Industrial Park in Polaku, Bayelsa State. SNG had earlier in the year acquired the lease of one hectare of land in Polaku for the gas project which will supply gas for industries in the park and the environs. The project is expected to be delivered within six months. Speaking at the commissioning, the Managing Director, SNG, Ed Ubong said the Polaku project would boost industrialisation in Bayelsa State and provide employment opportunity for skilled and unskilled local population in addition to directly improving internally generated revenues in the state. He said, “The project will increase the over 150 industrial and commercial customers in Nigeria who currently receive SNG’s supply of natural gas through gas infrastructure that we have built with our partners and local stakeholders.” Responding to the rapid expansion of SNG as distribution network, Country Chair, Shell Companies in Nigeria, Osagie Okunbor said Shell was positioned to continue to optimise its onshore footprint while investing in gas. “For more than 50 years, Shell has been in the forefront of the campaign to develop and monetise Nigeria’s huge gas resources. SNG continues to demonstrate leadership in this space, growing the domestic gas market and also helping to improve lives in every state it operates.” SNG recently completed 20 kilometres domestic gas pipeline expansion project in Abia State, connecting Agbor Hill, Osisioma and Ariaria industrial zones. The expansion project has enabled the supply of pipeline gas to Ariaria Market Energy Solutions Limited, the Independent Power Project (IPP) consortium that provides electricity to the popular Ariaria market in Abia State. Ariaria International Market is one of the largest leather shoe-making and open stall markets in West Africa, with over 37,000 shops and an estimated one million traders.
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Kabir Mohammed

The Shell Petroleum Development Company of Nigeria Limited (SPDC) as operator of SPDC Joint Venture (SPDC-JV) facilities, recorded two incidences of oil spillage in the month of January to crude oil saboteur.

The company stated that the first was recorded on the first day of January 2018 at its 12-inch Imo River-Ogale pipeline at Uzuaku, while the second was reported on January 13, 2018, at its 28-inch Bomu-Bonny pipeline at Bodo West. Which happened as result of sabotage.

Shell had shut its Imo River oil pipeline on October 31, 2017, due to damage caused by thieves and deferred 25,000 barrels per day (bpd) of production, while the TNP which normally carries 150,000 barrels of oil per day to Bonny is utilizing a pipeline network of more than 50 years old.

Bomu-Bonny pipeline within Bodo creek is a Trans-Niger trunkline running from the hinterlands through Gokana, having interconnections with the Bodo manifold ashore and Bodo West flow station in the mangrove swampland of Bodo Creek, and link to Bonny terminal.

The company also estimated a spill volume of eight barrel of crude on the first day of the year and 25 barrel of crude on January 13, 2018.

Meanwhile, a report from the company stated that “The spill was contained on 02 Jan 2018, recovery completed on 06 Jan 2018, assessment planned for February 2018, while the later recovery planned is scheduled for February 2018.

The company noted that when spills occur from SPDC-JV facilities in the Niger Delta they respond as quickly as possible, no matter the cause.

The company further stated that “Oil spills due to crude oil theft and sabotage of facilities, as well as illegal refining, cause the environmental damage from oil and gas operations in the Niger Delta. Irrespective of the cause, the SPDC JV cleans up and remediates areas affected by spills originating from its facilities.

“A key priority for Shell is to achieve the goal of no spills from its operations.  No spill is acceptable and we work hard to prevent them. Regrettably, in addition to spills caused by criminal activity, there were seven operational spills of more than 100 kg in volume from Shell Companies in Nigeria facilities during 2016. This number is less than the 16 spills in 2015, due to continued progress on preventing operational spills, such as regular inspections and maintenance of pipelines

“SPDC has publicly reported oil spill statistics annually since 1995 in the Shell sustainability report and this website further enhances transparency on spills in Nigeria from SPDC-JV facilities. It tracks the progress of our spill response from when we learn about the leak to when clean-up is completed and certified by Regulators.

How SPDC respond to spills

The company further noted that, “When a leak is identified, production is suspended and efforts made to contain any spilled oil. We regularly test our emergency spill response procedures and capability to ensure staff and contractors can respond rapidly to an incident.

“In line with government regulations, a Joint Investigation Visit (JIV) team visits the spill site to establish the cause and volume of oil spilled. The team is led by the SPDC staff and includes representatives of the regulatory bodies, police, the state government, and impacted communities.

“The SPDC JV cleans and remediates the area impacted by spills from its facilities, irrespective of cause. In the case of operational spills, it also pays compensation to people and communities impacted by the spill. Once clean-up and remediation are completed, the work is inspected, and once satisfactory, approved and certified by Federal Government of Nigeria regulators – the Department of Petroleum Resources and National Oil Spill Detection and Response Agency,” it added.

 

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