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    Niger Delta Draws Balance from a Week of Attacks

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Summary

An attack on a Chevron facility in southern Nigeria a week ago has been followed by the murders of several security personnel in the area.

by: Mark Smedley

Posted in:

Africa, Security of Supply, Gas to Power, Corporate, Exploration & Production, Political, Ministries, Infrastructure, Pipelines, News By Country, Nigeria, Africa

Niger Delta Draws Balance from a Week of Attacks

Suspected militants were behind an attack last week that blew up an offshore platform belonging to Chevron near Escravos in the Niger Delta, reported Nigeria’s Punch newspaper on May 6.

The attack was claimed by the so-called ‘Niger Delta Avengers’ which threatened to extend its attacks to neighbouring states and even the capital Abuja. Such armed groups have motives varying from politics to extortion, and it is difficult for the authorities and oil operators to assess their threat.

Reuters reported May 10 that seven policemen and three soldiers were killed in 3 separate incidents spanning the previous two days across the Niger Delta, and quoted a local Nupeng trade union official as advising that the “best thing for any reasonable company to do is evacuate its workforce.”

A statement from Chevron, provided to NGA, said that “Chevron Nigeria Limited… confirms that at about 11.15 pm on Wednesday night, May 4, 2016, its Okan Valve Platform offshore facility in the Western Niger Delta region was breached by unknown persons; all personnel have been accounted for and no injuries have been reported.”

“The Okan facility is currently shut-in and we are assessing the situation. Resources were deployed to respond to a resulting spill.   The incident has been reported to the relevant security and regulatory bodies. CNL continues to monitor the situation and remains committed to meeting its business and corporate obligations, including protecting people and the environment and conducting its operations reliably and safely.” Chevron said in its 'current statement' late May 10. It declined to comment on reports that the Okan attack would curb associated gas supplies to local power producers.

An attack against a Royal Dutch Shell-run pipeline, that shut down the big Forcados oil export terminal in February, was also claimed by the Niger Delta Avengers.

Shell’s local affiliate, Shell Petroleum Development Company of Nigeria Limited (SPDC) told NGA earlier on May 11 that its only media statement since is: "We continue to monitor the security situation in our operating areas in the Niger Delta and are taking all possible steps to ensure the safety of staff and contractors. We do not wish to go into details. Our operations are continuing."

Yet by lunchtime May 11 SPDC "declared force majeure on Bonny Light exports effective 12:00hrs Nigerian Time May 10 2016, following a leak that led to the closure of Nembe Creek Trunk line for repairs by the operator, AITEO Eastern E & P Company Ltd," according to a statement sent to NGA.  Reuters reported said the pipe leak was described by officials as a technical fault, whereas local people had heard an explosion.

Shell and independent producer Seplat, in recent 1Q results, acknowledged that their equity production had been impacted by incidents in Nigeria.

Security is a major problem in Nigeria where deaths caused by terrorists increased by over 300% in 2014 to 7,512, according to Global Terrorism Index 2015 published by The Institute for Economics and Peace. Most deaths have been in the northeast where Islamist group Boko Haram is prevalent, although it has bombed Abuja too. In 2014 Boko became the world’s deadliest terrorist group, according to the same report, responsible for 6,644 deaths across West Africa.

Meanwhile the BBC reported May 11 that Nigerian President Muhammadu Buhari is not demanding “any apology” after UK Prime Minister David Cameron called his country “fantastically corrupt” in an unguarded comment to the Queen. The worldwide leader of the Anglican Church, Archbishop Justin Welby, who was also present insisted “this particular president is not corrupt.”  Buhari, a retired major general who has acknowledged the scale of Nigeria’s corruption and oil smuggling, is in London for an international anti-corruption conference on May 12. UK-based Welby, a former oil executive who worked in the region for the UK's Enterprise Oil before it was taken over by Shell, maintains a strong interest in West Africa.

 

Mark Smedley