In a significant victory for the Nigerian government’s ongoing reforms, the Trans-Niger Pipeline (TNP) has achieved an extraordinary feat by reporting flawless crude oil production throughout the entire month of May.
This accomplishment is particularly noteworthy considering the extensive efforts made in April to remove over 400 illegal connections from the pipeline.
Experts are hailing this progress as a testament to the effectiveness of the government’s reforms, which encompass private security engagement, enhanced security measures, and increased collaboration with host communities.
Kelvin Emmanuel, an esteemed energy sector expert and co-founder/CEO at Dairy Hills, commended the success, stating, “The fact that the month of May recorded zero incidences of pipeline transportation on Shell’s 28-inch Trans Niger Pipeline from flow stations in Rivers & parts of Bayelsa State is proof that the Task Force set up by the President to investigate coordinated crude oil theft is working.”
The Trans-Niger Pipeline (TNP) holds a significant position as one of Nigeria’s largest oil pipelines, playing a pivotal role in transporting crude oil within the Niger Delta region, renowned for its vast oil reserves. Operated jointly by the Shell Petroleum Development Company and the Nigerian National Petroleum Company Limited (NNPC), the TNP stretches approximately 180 kilometers (112 miles).
Serving as a critical infrastructure, the TNP facilitates the movement of crude oil from oilfields in the Niger Delta to export terminals, primarily the Bonny Export Terminal. With an impressive capacity to transport over 450,000 barrels of crude oil per day, it contributes significantly to Nigeria’s oil production and export.
Data from the Nigerian Upstream Petroleum Regulatory Commission indicates a remarkable 24% increase in oil production (crude oil and condensate) via the Bonny Terminal, soaring from 3.0 million barrels in April to an impressive 3.72 million barrels in May.
The Trans-Niger Pipeline’s responsibility of transporting approximately 180,000 barrels of crude oil per day to the Bonny export terminal plays a vital role in ensuring the terminal’s seamless operation. As a major onshore crude oil terminal, the Bonny terminal boasts an impressive capacity of 5.7 million barrels.
During an oil and gas conference in April, Osagie Okunbor, the managing director of the Shell Petroleum Development Company of Nigeria (SPDC), revealed that the company had successfully identified and eliminated 460 illegal connections on the Trans-Niger Pipeline (TNP) before resuming operations following a one-year shutdown.
Etulan Adu, an accomplished oil and gas production engineer, attributes the improved output to pipeline intervention works, curbing of bunkering and oil theft activities, increased injection from producing companies, and contributions from third-party injectors to the terminal.
“These factors have a direct relationship and impact on volumes. Being intentional about this would go a long way in maintaining it. The Policy Advisory Council is apt on the nation sending out a strong signal that it’s not business as usual with regards to insecurity,” said Jide Pratt, chief operating officer of Aiona and country manager of Trade Grid.
The Bonny Terminal, with its substantial capacity to handle large volumes of crude oil, has remained a vital component of Nigeria’s oil industry for numerous years. However, it has faced significant challenges in the past, including attacks and disruptions leading to force majeures, substantial losses, and disruptions in oil production.
