…Joint investigation team dispatched- Renaissance
Nigeria’s oil production has suffered a significant blow following an explosion on one of the nation’s largest oil pipelines, raising fears that such sabotage could once again cripple output in Africa’s top oil producer.
The pipeline, known as the Trans Niger Pipeline (TNP), with a capacity of around 450,000 barrels per day, is a major oil artery that transports crude from onshore oilfields to the Bonny export terminal.
BusinessDay’s findings showed that the latest explosion forced a temporary shutdown of the important infrastructure responsible for transporting crude oil from oilfields in the Niger Delta to export terminals, primarily the Bonny Export Terminal.
Residents described hearing a loud blast, followed by intense heat and flames. While the cause of the explosion is yet to be officially confirmed, sources suggest it could be linked to Rivers State’s political crises, sabotage or vandalism.
It is not clear if the latest explosion is connected to the political crises in the state triggered by the feud between Governor Siminalayi Fubara and his predecessor, Nyesom Wike, the current Federal Capital Territory (FCT) minister.
Read also: Nigeria sees higher oil production doubling GDP growth in 2025
The incident occurred about a week after the Ijaw National Congress (INC) threatened to shut down crude oil exploration in Nigeria’s Delta region if Fubara is impeached.
It also occurred a few days after the pro-Wike lawmakers served Fubara and his deputy a letter containing gross misconduct they claimed the governor had committed.
“The question is who is behind this? Those who want Fubara to remain in office? Or those who prefer a state of emergency to be declared in Rivers State and the governor constitutionally/surgically removed?” a senior oil executive asked.
On Tuesday, police authorities in Rivers arrested two persons over the explosion that rocked the Bodo community.
The explosion, which ripped through the mangrove, happened on Monday night but was put out.
However, Grace Iringe-Iroko, spokesperson of the Rivers State Police Command, said some persons have been taken in for questioning over the incident.
“The Rivers State Police Command has commenced a thorough investigation to determine the cause of the fire. In connection with this, two individuals have been taken in for questioning as part of efforts to uncover any potential act of sabotage,” the police spokesperson said in a statement issued on Tuesday.
According to her, security operatives during a night patrol observed the incident, which happened at the border of Kpor and Bodo communities, and alerted the Shell Petroleum Development Company (SPDC) which operates the pipeline.
“The latter initiated necessary safety protocols, including shutting down the affected pipeline,” Iringe-Iroko said.
“As a result of swift intervention, the situation is now under control, and there is no further threat to residents or the environment.”
Abubakar Momoh, minister of regional affairs, had earlier said details of the incident were sketchy but investigations were ongoing over the explosion.
“Up till this moment, we have not been able to get clear details as to what caused that very explosion but investigations are going on,” the minister said on Channels Television’s Lunchtime Politics on Tuesday.
Read also: Tension in Rivers as militants threaten oil production; police vow clampdown
Renaissance to investigate explosion
Meanwhile, Tony Okonedo, spokesperson of Nigerian oil consortium Renaissance Group, confirmed on Tuesday a blast on the group’s Trans Niger oil pipeline in the coastal River State, noting that it has dispatched a team to investigate.
The consortium, which includes Nigerian exploration and production companies Aradel Energy, First E & P, Waltersmith, and ND Western, along with the international energy group Petroline, now operates Shell’s former onshore subsidiary in Nigeria.
“Renaissance is responding to reports of an incident in its eastern operations. Part of that response is a regulator-led joint investigation visit,” Okonedo said.
Impact on budget
The disruption comes at a critical time for Nigeria, which has been striving to ramp up oil production to meet its Organisation of Petroleum Exporting Countries (OPEC) quota and boost revenue amid economic challenges.
Data obtained from both OPEC and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that in February, Nigeria was neither able to meet its OPEC quota of 1.5 million barrels per day (bpd), nor did it move closer to hitting its crude output forecast of over 2 million bpd in this year’s budget.
In February, the country’s output reduced to 1.671 million bpd.
The NUPRC data on Nigeria’s crude oil production saw oil and condensate output falling from 1.73 million bpd in January, a major blow to the successful implementation of this year’s budget.
OPEC, in its Monthly Oil Market Report (MOMR), indicated that the country’s crude oil production declined from 1.54 million bpd in January to 1.47 million bpd in February – about 4.81 per cent reduction.
Read also: We control 50% of Nigeria oil production, say local oil producers
But secondary sources, mainly OPEC consultants, said crude oil production in the West African country rose to 1.56 million bpd in February from 1.53 million bpd in January, indicating a 1.96 percent increase.
The temporary shutdown of the Trans-Niger Pipeline is expected to impact oil exports, potentially leading to revenue losses and further straining the nation’s economy.
This will negatively impact the federal government’s dreams of raising N19.60 trillion or 56 percent of its revenues from the oil sector.
The government is eyeing an oil price above $75 per barrel and a production of at least 2.06 million barrels per day (bpd).