Niger Delta Pipeline Vandalism| Two Refineries Shut Down

Two refineries were shut down by the Nigerian National Petroleum Corporation (NNPC) due to pipeline vandalism by the Niger Delta militants last week. The refineries, with a combined capacity of 235,000 barrels per day, resumed production in December and January respectively after long maintenance work.

The refineries said the work stopped on Sunday. Spokesperson of NNPC, Mr Ohi Alegbe, confirmed the shutdown of the refineries which he said was to avoid any fire incident along the pipelines. He said the corporation shut-in the pipelines both for gas and crude oil along the affected areas to avoid further damage to the two refineries.

He said the NNPC will continue to monitor the progress of the refineries and the Nigeria Gas Company and update the public at the appropriate time. Some militant groups weekend attacked pipelines in the Niger Delta region following the arrest warrant for former militant leader Government Ekpemupolo, known as Tompolo, as part of a crackdown on corruption by the President Buhari administration.

Before the incident, the two refineries were refining about 4 million litres of products which include Dual Purpose Kerosene and Premium Motor Sprit (PMS). Meanwhile, Brent crude oil prices rebounded about 3 per cent yesterday from 12-year lows after data showed Chinese oil demand likely hit a record high in 2015, but the recovery was not expected to last amid warnings that the market would stay oversupplied this year, according to Reuters news agency.

The Brent contract for March delivery rose 91 cents to $29.46 a barrel, a 3.2 per cent rise, by 11:33 a.m. EST (1633 GMT). It traded as high as $30.24, rebounding from $27.67 on Monday, its lowest since 2003.