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Shell closes Escravos flow station due to protests

11 Nov 2016, 04:29 pm
Financial Nigeria
Shell closes Escravos flow station due to protests

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- The protests led to the shutdown of power and water supplies as well as crude production.


A crude oil flow station operated by Shell Petroleum Development Company (SPDC), the Nigerian unit of the Anglo-Dutch oil giant, Royal Dutch Shell, was shut down on Wednesday due to demonstrations by villagers in the Niger Delta region.

According to a Reuters report, the flow station was no longer processing crude as a group of protesters, led by Shyne Edema, were demonstrating at the facility for over a week. The protests led to the shutdown of power and water supplies as well as crude production.

The protesters, who were demanding for aid, accused the oil company of "neglect of its social responsibility of providing good roads, water and electricity for its host communities where none of these things exist."

According to Reuters, Shell said it was engaging with the Delta State government and community leaders to address the grievances.

"SPDC provides power to Ugborodo communities through company-maintained diesel generating sets, pending the completion of the electricity project for the communities," Shell stated.

Earlier in the week, Niger Delta Avengers (NDA), one of the militant groups in the region demanding a greater share of oil revenue, attacked Shell's Forcados export pipeline. Such incessant attacks have led to the decline in Nigeria's crude oil production amid low oil prices, leading to a plunge in government revenue.

Last week, Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu, said oil output, which had declined by 1.37 million barrels per day in May, rose to 2.1 million bpd.

The Nigerian government is currently engaging leaders in the region and some members of the militant groups in efforts to end the attacks on oil installations. Also this week, the government announced the inauguration of the Niger Delta Riverine Protection Programme, through the office of the Ministry of Niger Delta Affairs. The programme is aimed at stopping the bombing of pipelines, the proliferation of small arms and light weapons and to curtail the illegal refining of petroleum products in the region.

It is not yet clear what the impact of the Escravos flow station closure would have. Shell, however, said it has alternative routes for its Escravos exports.


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