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FG Abandons Broken Oil Pipelines, Transport Crude Across Waterways

In order to increase oil production, Nigeria has resorted to a fleet of small river-going tankers

This is coming after the country’s most important oil pipelines were reportedly broken

According to a report, FG wants to increase output before the oil production restriction by OPEC

One of Nigeria’s most important oil pipelines has been broken for months, hence, the country is resorting to a fleet of small river-going tankers to increase oil production.

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Africa’s largest producer has begun utilizing the tiny ships to transport a new grade of oil, Nembe Creek, up the Niger River delta and onto an ocean-going ship stationed off the nation’s coast.

Crude oil
Nigeria is slated to load roughly 65,000 barrels per day of the new Nembe Creek grade this month and the following. Photo Credit: FG, Bet_Noire

According to export loading programmes, Nigeria is slated to load roughly 65,000 barrels per day of the new Nembe Creek grade this month and the following. Most of the decrease in flows from Bonny would be replaced by that, though not entirely.

This is part of the effort by the government to increase output before OPEC votes on new oil production restrictions.

Oil was formerly transported through Nembe Creek

Previously, the same oil was transported to the Bonny terminal, which is run by Shell Plc, via the Nembe Creek trunk pipeline, according to a Bloomberg report.

According to those with knowledge of the situation, that pipeline, run by the Aiteo Group and once capable of transporting 150,000 barrels per day or more, hasn’t delivered oil to Bonny since February 2022. Another pipeline continues to provide Bonny with its contents.

The rerouting decreases total Bonny exports but shouldn’t impact Shell’s proportion of Nigerian oil. In 2015, Shell sold the pipeline to Aiteo.

According to a terminal information sheet from Bloomberg, the new logistical structure uses a floating storage offloading vessel dubbed Galilean 7 anchored next to the Brass facility.

It is substantially more expensive to transport Nembe Creek oil than oil from pipelines, which Nigeria and Aiteo own.

It takes around 24 separate deliveries to collect enough oil to fill a typical ocean-going ship because the river’s depth restricts the size of ships that can sail up it.

An official from Shell declined to respond. Requests for comment from Aiteo and NNPC did not immediately receive a response.

On October 10, according to tanker monitoring data provided by Bloomberg, the 1 million barrel Suezmax ship Maran Orpheus lifted the first cargo of the new grade from the Nembe Creek facility.

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JOLOWO BUNALAYEFA PIUS is the Chief Executive Officer (CEO) for BUNADY NEWSLITE GLOBAL ENTERPRISE (Bunady.com). He started his Blogging/Journalism career at God's Own Wireless Company 2012. He's a graduate of Adekunle Ajasin University Akungba Akoko Ondo State, with a major in History And International Studies. You can contact him for press events, advertisement promotions on Email: contact.bunady@gmail.com

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