Trans Niger Delta Pipeline Halts Operations Following Explosion After Shell’s Asset Sale
The Trans Niger Delta Pipeline in Nigeria was halted after an explosion following Shell Plc’s recent sale of its stake to Renaissance Africa Energy Holdings. The pipeline is crucial for the country’s oil exports and its security is a growing concern amid ongoing political tensions and vandalism issues.
A Nigerian oil pipeline, part of which Shell Plc sold last week, has been suspended due to an incident, according to local police. The Trans Niger Delta Pipeline, operated by the Rivers State Police Command, was halted following a reported explosion. Renaissance Africa Energy Holdings recently purchased Shell Petroleum Development Company’s stake in the pipeline, subsequently rebranding it as Renaissance Africa Energy Company Ltd.
The incident now under investigation affects the Trans-Niger Pipeline (TNP), crucial for approximately 15% of Nigeria’s oil exports and vital for transporting Bonny grade oil. The cause of the explosion and its level of disruption remain unclear, as Nigeria’s oil sector has been historically vulnerable to sabotage and vandalism.
This pipeline runs through the Rivers state, Nigeria’s primary crude production area, where local political tensions are rising amid an impeachment notice against the state governor and deputy. Previous Supreme Court rulings have restricted the central bank from distributing state funds, which may exacerbate regional instability. The pipeline incident was discovered during a routine police patrol, prompting immediate action to halt operations.
The suspension of the Trans Niger Delta Pipeline following a recent explosion underscores ongoing challenges in Nigeria’s oil sector, particularly regarding infrastructure security. With Renaissance Africa Energy Holdings now at the helm after acquiring Shell’s assets, the need for effective management and protection of resources remains critical. The political climate and historical issues of sabotage contribute to the complexity of maintaining operations in the region.
Original Source: financialpost.com
