Shell pipeline fire threatens to deepen Nigerian oil output drop

January 06, 2017 | Nigeria, Pipelines

Lagos, Nigeria | – Royal Dutch Shell shut the Trans Niger oil pipeline after a fire, threatening to worsen a drop in Nigerian output due to unplanned disruptions.

The line, which can transport about 180,000 bopd to the Bonny Export Terminal in the Niger Delta, was halted Tuesday due to a blaze at Kpor in Ogoniland, Precious Okolobo, a Shell Nigeria spokesman in Lagos, said Thursday by phone. Shell declined to comment on the impact on production.

Nigeria’s daily output dropped by 200,000 bbl to 1.45 MMbpd in December, ending three months of gains as the African nation struggled to restore capacity after a year of militant attacks on oil infrastructure. Production fell to 1.39 MMbopd in August, the lowest level since 1988, according to data compiled by Bloomberg.