Vandals Disrupt Shell Pipeline in Nigeria
LAGOS, Nigeria—Vandals over the weekend punctured an oil pipeline operated by Royal Dutch Shell PLC, say Nigerian military and security officials, highlighting how an illicit oil-theft industry in the creeks of the Niger Delta continues unchecked.
The breach that occurred Saturday was originally reported to have been the work of militants bucking a five-month cease-fire with the government. But the pipeline damage was caused by “vandalism and not an explosive attack,” said a western oil executive responsible for security and knowledgeable about the situation.
It was unclear how much production was affected. On Sunday, Shell said that the breach had shut down three flow stations after “a leak was observed on the Trans Ramos Pipeline.”
A Shell representative declined to comment on lost production or the cost effect of the shut downs.
Known as illegal bunkering, the theft of crude oil has boomed over the past few years. The stolen oil can be sold to local refiners that cook the crude down into diesel and kerosene for the domestic market, or it can be shipped to international ports for sale.
Those who illegally puncture the pipelines range from technically sophisticated operators—many of whom were once trained by western oil companies—to locals using simple tools to siphon off crude or liquefied gas. The motive is the same: profit.