…Renaissance Consortium Worse Hit
….Police Arrest Two Over Trans-Niger Pipeline Explosion In Rivers
Production of more than 450, 000 barrels of crude oil is at risk following an explosion reported on Tuesday at the Trans-Niger Pipeline (TNP) in Rivers State.
The pipeline is considered one of Nigeria’s biggest oil pipelines. It is a major crude oil transportation pipeline in the Niger Delta region, which is known for its significant oil reserves.
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.
Operated by Renaissance and the Nigerian National Petroleum Company Limited (NNPCL), it spans approximately 180 kilometres (112 miles).
The TNP is an important infrastructure for transporting crude oil from oilfields in the Niger Delta to export terminals, primarily the Bonny Export Terminal. Its over 450,000 barrels of crude oil per day capacity, makes it a significant contributor to Nigeria’s oil production and export.
The incident, which occurred in Rivers State, is the latest in a series of political crises plaguing the country’s oil infrastructure.
The explosion, reported late Monday evening sent plumes of thick smoke into the sky, visible from miles away.
Residents described hearing a loud blast followed by intense heat and flames. While the cause of the explosion is yet to be known, authorities say investigation is ongoing.
Police authorities in Rivers have since arrested two persons over the explosion that rocked the Bodo community
The incident comes at a time when the country is grappling with low crude oil production which has in turn affected its projected revenue. The Federal government had projected a crude oil production of 2.06 million barrels per in its almost N55 trillion 2205 budget, pegging it at $75 per barrel oil price for the year.
Nigeria currently relies heavily on crude oil production for the larger part of its revenue. The budget anticipates total revenue of N36.35 trillion, with oil revenues expected to contribute 56 per cent of government income.
Data obtained from both the Organisation of Petroleum Exporting Countries (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 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 recorded a reduced production of 1.671 million bpd, to increase the output gap.
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 decline.
But secondary sources, mainly OPEC consultants, showed that 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 per cent increase.
Production will not only be affected at the TNP.
According to the NUPRC data, among others, production decreased is also currently being experienced at the Ebok stream/terminal/ output went from 283,239 barrels to 278,452 barrels in February.
Production also fell from 120,796 barrels to 40,447 in Ajapa terminal and slumped from 4 million barrels to 3.68 million barrels in Bonga in February.
In addition, during the period under consideration, production from Erha terminal fell from 2.1 million barrels to 1.8 million barrels; 2.1 million barrels to 1.8 million barrels in Egina; from 504,000 barrels to 200,000 barrels in Oyo terminal and from 425,878 barrela to 408,590 barrels in Pennington.
The biggest volumes of output decline, took place at the Bonny terminal from 8.1 million barrels to 6.3 million barrels. Also, it reduced from about 1 million barrels to 876,000 in Brass; 4.63 million barrels to 4.2 million barrels in Qua Iboe; 8.8 million barrels to 7.7 million barrels in Forcados; 4.4 million barrels in Excravos to 3.8 million barrels and 2.3 million barrels to 2 million barrels in Odudu terminal.
“Lowest and peak production in February were 1.60 million bpd and 1.76 million bpd respectively. The daily average production in February was 1,671,953 barrels per day, comprising both crude oil of 1,465,006 bpd and condensate of 206,948 bpd.
“The average crude oil production was 98 per cent of OPEC quota of 1.5 million bpd”, the NUPRC data stated.
With February’s production figures falling below OPEC’s quota, budgetary assumptions, petroleum ministry’s projections, and the explosion at the TNP, it is unlikely that the country would meet its revenue targets for 2025.
Meanwhile, Police Arrest Two Over Trans-Niger Pipeline Explosion In Rivers
The fire from the explosion which ripped through the mangrove has been put out.
Police authorities in Rivers State have arrested two persons over the Trans-Niger Pipeline explosion that rocked the Bodo community of the state and have also begun an investigation into the
The fire from explosion which ripped through the mangrove happened on Monday night but has been put out.
Spokesperson of the Rivers State Police Command Grace Iringe-Iroko 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
Rivers is a major oil-producing state in Nigeria.
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.”
In videos of the explosion, thick black smoke was seen billowing into the sky as the fire surged into the mangrove.
Some residents of the area were later seen around the scene of the incident trying to keep watch over the place.
The Minister of Regional Affairs Abubakar Momoh had earlier said details of the incident are sketchy but investigations are 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.
He, however, said “a clear picture” of what happened will be revealed, “in due time”.
The pipeline transports crude to the Bonny Export Terminal in Rivers State.
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