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UPDATE 1-Shell Nigeria shuts Trans Niger pipeline after explosion

Thu, 20th Jun 2013 18:32

* Explosion, fire at "crude theft point"

* 150,000 barrels per day of crude deferred

LAGOS, June 20 (Reuters) - Royal Dutch Shell Plc's Shell Nigeria said on Thursday it had shut its Trans Nigerpipeline (TNP) after an explosion and fire at a "crude oil theftpoint", deferring 150,000 barrels per day.

It said in a statement the explosion occurred at a sectionof the pipeline running through Bodo West, in Ogoniland, an areaalready heavily polluted by oil spills.

It said the 28 section of the pipeline would remain shut"until the fire has been extinguished, and investigation anddamage assessment completed."

"This is another sad reminder of the tragic consequences ofcrude oil theft," Shell country director Mutiu Sunmonu said inthe statement.

"Unknown persons continued to reconnect illegal bunkeringhoses at Bodo West even as our pipeline team were removing crudetheft points."

The government says oil 'bunkering', hacking into pipelinesto steal crude then refining it or selling it abroad, is a majordrain on the treasury, with between 150,000 barrels and 180,000barrels a day stolen.

The accountant general said on Thursday that oil theft andpipeline vandalism were responsible for a 5 percent fall inNigeria's government revenues.

Bodo already suffers heavy pollution from a series of oilspills over the past decade that have left its waters covered ina constant film of crude.

Environmental campaigners and rights groups accuse Shell ofusing sabotage by oil thieves as an excuse for oil accidents.

"Sabotage is a problem in Nigeria, but Shell exaggeratesthis issue to avoid criticism for its failure to prevent oilspills," Amnesty International's Audrey Gaughran said in astatement on Wednesday.

Shell says oil theft is nowadays responsible for most oilspilt. In March it said the practice had reached "unprecedented"levels.

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