Huhuonline.com understands that Nigerian Agip Oil Company (NAOC), a unit of Italian oil giant, Eni, has shut in 25,000 barrels of oil per day following a blast at its facility in Nembe, in Bayelsa State.
The blast and the disruptions have forced the company to declare a force majeure, the company said in a statement.
The blast cut off oil export from its Brass Export Terminal, and also cut off gas supplies to Nigerian Liquefied National Gas company in Bonny, Eni said in a statement yesterday.
Also disrupted by the blast was gas supplies to the Okpai Power Plant, it added in the statement. It said gas output of 13 million standard cubic metres per day had been deferred due to the incident.
According to the statement, the incident was the second attack in a few days after an earlier incident of February 28, this year at its Obama flowstation led to production shortfalls of 5,000 barrels per day (bpd).
“An incident occurred on the Ogoda/Brass 24 oil line, at Okparatubo in Nembe Local Government Area of Bayelsa State. The event was caused by a blast, consequently causing a spill,” Eni said.
“All wells connected to that pipeline were immediately shut down whilst river booms and containment barges were mobilised to reduce the impact of the spill.
“Regulators for inspection visit and repair teams have also been activated. State and Federal Government and security authorities were notified.”
“Deferred production is estimated at 25,000 barrel of oil per day and about 13 MSCM/d of gas. Force majeure has been declared at Brass terminal, Bonny NLNG and Okpai power plant.”
This is happening at a time when the price of oil has risen astronomically following the war between Russia and Ukraine.
At a price of $100 per barrel of crude oil, Nigeria could lose as much as $2.5 million each day.
