Nigeria’s Crude Output May Drop as Shell Shuts Leaking Oil Pipeline

The oil major confirmed an oil spill from one of its assets in the Obololi community, Southern Ijaw Local Government Area of Bayelsa State.

The shut down followed an oil leak on the pipeline at Obololi community a coastline community along the River Nun in Southern Ijaw, oil rich Bayelsa State.

Nigeria which is targeting around 2.06 million barrels per day, may have its current 1.767 million barrels per day affected by the drawback from this development.

A spokesperson for SPDC, Mr Michael Adande, said the company’s Oil Spill Response Team had identified the leak and immediately took action to contain it.

“The Shell Petroleum Development Company of Nigeria Limited, SPDC, operator of the SPDC Joint Venture, confirms that its Oil Spill Response Team has identified a leak from one of the SPDC JV assets located in the Obololi community, Southern Ijaw Local Government Area of Bayelsa State. The Team immediately isolated the line and suspended production into the line,” Mr Adande stated.

He added that regulatory authorities and other stakeholders had been notified, and preparations were underway for a Joint Investigation Visit to determine the cause and impact of the spill.

“Plan to conduct a regulator-led Joint Investigation Visit to determine the cause and impact of the spill is ongoing,” he said.

Although the SPDC did not specify the volume of oil production affected by the shutdown, the 16 inch pipeline evacuates oil produced from various oil fields within Bayelsa swamps and feeds the SPDC’s manifold in Kolo area.

The spill had raised concerns about environmental and economic impacts, as oil spills in the Niger Delta have historically led to severe pollution, affecting communities and livelihoods.

Meanwhile, the National Oil Spills Detection and Response Agency (NOSDRA) said it received a report of an oil spill incident from a Shell-operated facility at Obololi, Southern Ijaw Local Government Area of Bayelsa.

The leak from the 16 inch Nun River-Kolo Creek pipeline discharged a yet-to-ascertained volume of crude into the River Nun, impacting adjoining areas around Obololi.

A statement signed by Mr Chukwuemeka Woke, Director-General of NOSDRA, stated that incident is being investigated.

Mr Woke assured that NOSDRA was actively monitoring the ongoing response and continuously evaluating the situation to ensure that appropriate actions are taken.

The NOSDRA DG said on that the cause of the leak and estimated volume discharged was yet to be determined because the pipeline was beneath the river.

The watchdog said that it has recommended a diversion of the river to a temporary dam to give access to the joint investigating team to the leak point for examination.