State of emergency after Nigeria pipeline attack:Update

Market: Crude oil
18/03/25

Updates with state of emergency declared

The Nigerian government has declared a state of emergency in Rivers State, after an apparent attack on the Trans-Niger Pipeline (TNP) halted crude movements to Nigeria's Bonny Light export terminal.

A fire occurred on the pipeline at the border of the Kpor and Bodo communities, and the pipeline's management has shut down the affected section, the Rivers State police said. Operator Renaissance Africa said it is responding to an incident.

The 180,000 b/d, 60km TNP carries crude to the Bonny terminal, from where the Bonny Light grade is exported. TNP was operated until 14 March by Shell subsidiary SPDC.

The pipeline has been the target of repeated oil theft, vandalism and sabotage in the past, and Shell shut the TNP entirely between April and October 2022. Nigerian President Bola Tinubu today said the resumption of "disturbing incidents" had happened "without the [state] governor taking any action to curtail them". Tinubu suspended the Rivers State governor and his deputy and said the region will be under federal control, effective immediately.

It is unclear what if any effect this will have on the region's oil production, a source within state-owned oil firm NNPC told Argus.

But it appears the pipeline attack has halted loadings at the Bonny terminal. The Almi Voyager was the most recent tanker to load there, with around 550,000 bl of crude on 14 March. Loading operations are seemingly halted as the pumping of 475,000 bl to NNPC's 210,000 b/d Port Harcourt refinery was the next scheduled operation before the explosion.

Market sources said they are monitoring the situation and awaiting a possible declaration of force majeure by Renaissance Africa. Sources added that loading operations at the export terminal were already running up to two weeks behind schedule.

By Elena Mataro, Adebiyi Olusolape and Sanjana Shivdas

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