Nigeria’s Trans Niger Pipeline shut down-industry source

By Julia Payne

LONDON, July 11 (Reuters) – Nigeria’s Trans Niger Pipeline, one of two major pipelines that carries Bonny Light crude for export, was shut down on Monday, an industry source familiar with the matter said.

Neither the cause of the shutdown nor any impact on production was known.

Oil major Shell operates the Bonny Light export terminal through its local affiliate SPDC.

“SPDC shut down the Trans Niger Pipeline today [July 11, 2016] following a leak at Gio in Ogoniland. We are working towards a joint investigation visit into the cause of the leak, preparatory to repair of the line,” said an SPDC spokesman.

Click here for video: CEO Mike Swihart explains how well automation reduces costs, boosts production for Permian Basin operators. Systems start at $3,000 fully installed by Production Lift Technologies of Midland, Texas.

The other major pipeline, the Nembe Creek Trunk Line (NCTL), that transports Bonny Light to port was operating normally, several industry sources said. Local firm Aiteo operates the NCTL.

Shell lifted force majeure on Bonny Light exports last week. The force majeure had been announced after a leak was found on the NCTL on May 11.

Nigeria’s oil production has recovered to around 1.9 million barrels per day, its oil minister Emmanuel Ibe Kachikwu said on Friday. Attacks by the militant group, the Niger Delta Avengers, had pushed output to its lowest in over 20 years.

Exports of the Forcados crude blend, loaded from Shell’s Forcados terminal, have been down since February following an underwater pipeline attack. Kachikwu said that repairs were expected to be completed at the end of July.

(Writing by Julia Payne and Alexis Akwagyiram; Editing by William Hardy and David Evans)