Renaissance Africa Energy Company Limited has implemented a temporary rerouting of crude oil transportation following an explosion and rupture of the Trans-Niger Pipeline (TNP) due to sabotage.
On Wednesday, the alternative pipeline successfully passed an integrity test, enabling crude transportation to continue as repairs are carried out, according to Reuters.
The TNP, which has a daily capacity of 450,000 barrels, plays a crucial role in the export of Bonny Light crude, a premium Nigerian oil grade. The attack on this vital infrastructure raises fresh concerns about Nigeria’s oil security at a time when the nation is striving to boost crude production and attract investments.
The explosion occurred shortly after Renaissance, a consortium of Nigerian oil firms, finalized the acquisition of Shell’s onshore assets operated by the Shell Petroleum Development Company (SPDC).
Despite the setback, Renaissance has dismissed the option of declaring force majeure, a legal clause allowing companies to suspend contractual obligations due to unforeseen circumstances.
Meanwhile, two oil tankers remain anchored at the Bonny Terminal awaiting crude shipments, as reported by Bloomberg’s ship-tracking data.
In response to the crisis, President Bola Tinubu declared a state of emergency in Rivers State, dismissing all elected officials, including the governor, deputy governor, and state lawmakers. He cited ongoing political unrest as a contributing factor to the attack on the TNP.
Experts caution that continued sabotage of oil infrastructure could undermine investor confidence and hinder revenue generation. The Nigerian government has pledged to implement more stringent security measures to protect critical energy assets, but restoring stability remains a significant challenge.
Source: Thisdaylive.com
