Shell closes Trans Niger pipeline

Shell Petroleum Development Company has closed the Trans Niger pipeline due to a leak, the company said Monday.

A spill in B-Dere, Ogoniland, forced the closure of the pipeline on July 21, the statement added. An investigation into the cause was still ongoing at the time of the announcement.

The news came a day after Nigeria agreed to cap its output at 1.8 million bopd, once that level is attained, in solidarity with global production cuts extended by a further 9 months in May. The country had been exempted from the curbs due to repeated interruptions to output by militant attacks.

In the past few months, the violence has waned. Though peace talks with rebels have proceeded more slowly than expected, in May 2017 industry officials claimed that the worst was over and that output was on track to reach 2.2 million bopd by late June.

Yet, stoppages have continued, with a number of pipeline accidents in recent weeks. On June 9, 2017, Shell declared force majeure on Bonny Light crude due to a leak in the Trans Niger Pipeline. On June 28, force majeure was lifted, but it was reinstated July 13 because Aiteo Eastern E&P had to close the Nembe Creek Trunk Line due to a leak.