Crude oil feed into the Okordia–Rumuekpe pipeline in Rivers State has been suspended by Renaissance Africa Energy Company Limited.
This action was taken by the energy firm after a leak in the 14-inch pipeline in Ikata under the Ahoada East Local Government Area of Rivers State.
Before now, the oil facility was operated by Shell Petroleum Development Company (SPDC), but Renaissance recently acquired all the oil assets of Shell in a deal finally approved by the federal government.
Business Post reports that Renaissance took over onshore oil and gas assets of Shell in Nigeria for about $2.4 billion.
The recent oil leak was the first major incident the facility was experiencing since the transaction was concluded a few months ago.
Confirming the shutdown in a statement on Tuesday, a spokesperson for Renaissance Africa Energy, Mr Michael Akande, explained that the action was taken to protect the environment.
“We have taken immediate steps to isolate and discontinue production into the pipeline to minimise any potential environmental impact,” Mr Adande stated.
He noted that the relevant regulatory authorities have been informed of the oil leak, assuring that the company will cooperate with the regulators to determine the cause and extent of the spill.
“Government regulators have been informed, and we are actively coordinating the statutory joint investigation visit, which will include their representatives and those from the local community,” he added.
As anticipation builds for the outcome of the JIV, environmental advocates and local leaders have called for transparency and immediate remediation.
Nigeria’s oil production have been affected over the years by a series of challenges. While efforts to curb them have yielded some results, the country is still far from hitting its 2.06 million barrels per day target to fund its 2025 budget.
Nigeria’s oil production peaked at 2.5 million barrels decades ago and despite ambitious 3-4 million barrels promises by subsequent governments, the highest actualisation in recent times have been 1.8 million barrels per day.