Trans-Niger Pipeline Explosion: Nigeria’s Crude Output, Revenue Face Decline Amid Rivers Chaos

The explosions on Tuesday in Rivers communities at a pipeline manifold in the Omwawriwa axis of Ogba-Egbema-Ndoni and Trans Niger Pipeline operated by Shell in Bodo, Gokana Local Government Areas in Rivers State, are major blow to Nigeria’s crude oil output and revenue.

While the pipeline manifold transports crude oil to Brass in Bayelsa State, 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.

The two explosions on Tuesday have resulted in the pipelines temporary closure, DAILY POST gathered on Tuesday.

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In addition, Nigeria’s gas-dependent electricity plants, like the Geometric Power Aba, have been hit with gas supply shortages after the Trans Niger Pipeline explosion.

No doubt, the negative impact of the explosions has a far-reaching negative impact on the nation’s already grappling economy.
Although there are no official findings that linked the explosions to the crisis between Governor Simi Fubara and his predecessor, the Federal Capital Territory minister, Nyesom Wike, sources had fingered the rift.

The explosions came barely a week the Ijaw National Congress (INC) threatened to shut down crude oil exploration in Nigeria’s Delta region if Fubara is impeached.

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Similarly, the incident came at a time when pro-Wike lawmakers led by its speaker, Martins Amaewhule, served Fubara and his deputy a letter containing gross misconduct they claimed the governor had committed.

Tony Okonedo, spokesperson of Nigerian oil consortium Renaissance Group, the current owner of Shell Nigeria, said it has commenced an investigation into the explosion at the Trans Niger Pipeline.

“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.

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Rivers State Police Command earlier announced that two persons have been arrested in connection with the explosions.

The disruptions came at a time Nigeria is battling to meet up with its crude oil production of the Organisation of Petroleum Exporting Countries (OPEC) quota and its revenue benchmark.

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 a 4.81 percent reduction at a time when it had over 2 million bpd in this year’s budget.

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The temporary halt of crude production at the affected pipeline may become a major challenge to Nigeria’s source of revenue.

Meanwhile, on Tuesday, President Bola Ahmed Tinubu, citing the unresolved crisis and danger to oil pipelines, declared a state of emergency in Rivers State.

He further suspended Governor Siminalayi Fubara and his deputy, Ngozi Odu, for six months.

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President Tinubu announced that Vice Admiral Ibokette Ibas is the administrator of Rivers State.