Chika Amanze-Nwachuku and Ahamefula Ogbu in Port Harcourt
19 June 2009
Lagos — Nigeria has recorded further reduction in its crude oil production as Shell Petroleum Development Company (SPDC) yesterday shut in some chunks of its oil production owing to last Wednesday's attack on its Trans Ramos pipeline in Aghoro-2 in Bayelsa State.
The escalation of violence in the Niger Delta region in the last three weeks, industry sources said, may have reduced Nigeria's crude oil production to about 1.3 million barrels per day (mbpd).
Prior to the renewed attacks on oil facilities in the region, the country was said to have recorded a shut in of over 1mbpd, bringing the country's output to only about 1.6mbpd.
Statistics released by the Department of Petroleum Resources (DPR) about a fortnight ago showed that production deferment due to the crisis in the oil-rich region was over 1mbpd.
The statistics indicated that both the reserves and the daily output are on the decline due to the restiveness in the Niger Delta, raising fears that it may deter the country from achieving its set targets of 4mbpd and reserves of 40 billion barrels by 2010.
The damaged Aghoro-2 pipeline is said to be connected to the Tunu, Opukusu and Ugbotubu flow stations, which feed into the Forcados export terminal.
The SPDC yesterday explained that the company had to shut in some oil production to avoid damage to the environment.
"The SPDC can confirm the Trans Ramos pipeline at Aghoro-2 community in Bayelsa State was attacked last night (Wednesday night). Some oil production has been shut in to avoid potential environmental impact," its spokesman, Precious Okolobo, said.
The Movement for the Emancipation of the Niger Delta (MEND), which claimed responsibility for the incident, had in the last three weeks launched several attacks on the facilities of United States oil major, Chevron, a development which resulted in the shut in of unspecified quantities of the company's oil production.
Speaking on the crisis, which has worsened by the day notwithstanding the offer of amnesty by the Federal Government, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mohammed Sanusi Barkindo, observed that the slowdown in investment in oil and gas production, insecurity in the oil-producing Niger Delta and OPEC quotas are some of the key challenges facing the industry.
The SPDC had on Tuesday declared a force majeure on Forcados crude oil exports for the remaining part of June and July, following the damage to its Trans Forcados Trunkline.
An initial force majeure declared by the company on March 7, would have ended in April while the oil major had planned to load up to eight cargoes of 950,000 barrels each in May, equivalent to around 245,000 barrels per day.
But the company had to extend the force majeure due to security concerns in the region.
However, following its inability to complete the repair of the damaged facility, the company on Tuesday, deferred both June and July loadings due to damage to the Trans-Forcados Trunkline at Chanomi Creek in Delta State.
Forcados crude is one of Nigeria's benchmark crude oil grades that are highly prized by foreign refiners due to its relatively low sulfur content.
MEND said in a statement it released late Wednesday night that it had blown up the Trans Ramos pipeline facility in its avowed "Hurricane Alpha Piper" with which it said it would ground Nigeria's oil production and export to zero level.
Okolobo confirmed the attack had been reported to all relevant government agencies.
The Joint Task Force (JTF) spokesman, Colonel Rabe Abubakar, said they had not received a report of any such attack and warned MEND which he called propagandist to desist from making bogus claims as its time was up.
MEND, in an email from its spokesman, Gbomo Jomo, said it dedicated the attack to the two brothers it alleged were slain extra judicially by soldiers and captured on tape which the JTF has denied.
"At about 2030 Hrs today, Wednesday, June 17, 2009, fighters from the Movement for the Emancipation of the Niger Delta (MEND) in furtherance of Hurricane Piper Alpha (our campaign to cripple the entire oil and gas export of the Federal Republic of Nigeria), destroyed with high explosives a major crude oil trunk line in Bayelsa State belonging to Shell.
"This delivery line which supplies the Forcados export terminal takes feed from the Tunu, Opukusu and Ugbotubu flow stations. The point of attack is the Agge/Odimodi axis.
"Piper Alpha veered off course to show its displeasure at the manner the government has reacted to the extra judicial killings of two brothers by the JTF that was caught on tape. This attack is dedicated to the brothers.
"Shell should take a cue from Chevron and vacate the Niger Delta region to avoid collateral damage to their investment and death to staff. We do not intend to waste time taking hostages. Hurricanes are no respecters on anyone," Jomo said.
In his response, Abubakar said: "We have not received any report from the company until such is received, we will not be able to comment on such claim. But all we can say is that all their claims are crying foul for cheap popularity and this is criminal. JTF is not competing with anybody or group.
"We are only here to carry out our assignment for the protection of all including MEND themselves. The general public is once again reminded that the activities of this group is unpatriotic, unholy and deserves to be condemned by all. However, the JTF would continue to monitor their activities and situation closely, as they adage goes 'that all days for the thief and one day for the owner.'"
Read comments. Write your own.
Copyright © 2009 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
This is just the beginning, if a govt is willing to cut off its nose in order to spite its face, then get used to it. Besides, given this fact, one would think that the Nigerian govt would be sober enough to spend the little money it has left wisely on providing educational, healthcare and other facilities that would improve the squalid condition of our teeming poor, some brainless Governors are in the process of attending Harvard University to learn about governance. Amazing! The exorbitant cost of this wasteful adult education is to be funded from the meager funds that should have been spent on the future generation. This misplaced priority is another form of corruption – how long do these governors hope to be in power, anyway? By the time they obtain their diplomas, it would be time to hand over to another do-do who probably would think of another creative idea to benefit him/her self at the expense of the public fund. If they need further training to do the job they campaigned to be an expert of, let them go to the Open University in Lagos. After all, upon the completion of his governance, former President Obasanjo attended the same Open University to set a prime example of upholding our local institutions, even though he did not need the training, given his stellar performance while in power. If these governors think our local institutions are inferior, then, make them better, if President YarAdua is too sickly, make healthcare delivery a priority – that is better governance, and Harvard cannot teach you more than that common sense. It is disappointing that Oshiomole is among this brainless group of doofus. Shameful, indeed.