Royal Dutch Shell, the largest oil producing company in Nigeria, which has suffered series of attacks on its 48-inch Forcados export pipeline that links onshore storage tanks with an offshore port, has ruled out the repair of the pipeline for now, Today reported.
“We cannot operate or repair if our people are threatened. It is not possible at this time. In the past, energy companies were able to repair pipelines after attacks, barring a few exceptions deep into the region’s swamps and creeks. The attacks are more destructive than in the past,” the Chief Financial Officer of Royal Dutch Shell, Simon Henry, said.
The repairs were being carried out in two different sites of the Forcados export pipeline, which was hit by explosions in February and again last week, said to Bloomberg a person familiar with the operations who asked not to be named because of security concerns.
Producers in Nigeria face a new level of insecurity as a wave of violence hits the oil-rich Niger Delta, leaving output at its lowest in nearly three decades. The latest attacks have been more destructive than in the past, Henry said. “There is clearly better organization and targeting,” according to the CFO, who also stated that “The issue can not be resolved through security only.”