focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Seawater pipeline attack heralds fresh trouble in Nigeria's Delta

Fri, 04th Mar 2016 12:10

* Attacks on oil facilities on the rise in Nigeria's Delta

* Sophisticated seawater attack signals escalation ofviolence

* Delta residents complain of neglect, poverty

By Ulf Laessing

LAGOS, March 4 (Reuters) - A sophisticated attack on asub-sea pipeline in Nigeria's Delta might herald a return to thekind of widespread militant violence that crippled the oilindustry in Africa's top producer less than a decade ago.

Attacks on oil facilities have been on the rise in theswamps since President Muhammadu Buhari vowed to shake up afraud-ridden amnesty programme for rebels who stopped blowing uppipelines in 2009 in exchange for cash and generous contracts.

Adding a new dimension, unknown militants - probably usingdivers - hit a Shell underwater pipeline last month,interrupting oil flows and forcing the company to shut down its250,000 barrel-a-day Forcados export terminal for weeks.

Nigeria-based diplomats and security experts say the attackshowed a level of skill and inside intelligence rarely seensince the 2004-2009 insurgency, which at its height halvedNigeria's oil output of around 2 millions barrels a day.

"This was an attack that required knowledge of the area andsophisticated equipment," said a Western security source, askingnot to be named. "There were underwater attacks before but nonerecently. The oil firms are really worried there will be more."

Militants tend to attack small overland pipelines or flowstations sitting in hard-to-access mosquito-infested creeks.

The underwater attack has cut 15 percent of Nigerian crudeoutput, dealing another blow to Buhari, who is already having tocope with a collapse of oil revenues due to falling prices, aBoko Haram jihadist insurgency in the north and secessionistcalls in the southeast.

The strike came a month after authorities issued an arrestwarrant for former militant leader Government Ekpemupolo, betterknown as Tompolo.

Like other ex-rebel leaders Tompolo became a millionairethrough the amnesty by winning contracts to protect pipelines heused to blow up in his fight for a greater share of Nigeria'soil wealth. Others made a fortune with massive oil theft.

Buhari has vowed to end over-priced state contracts andcrude theft. But in the Delta many ex-fighters see the hunt forTompolo as part of a campaign by mainly Muslim northerners, likethe president, against the Christian south. The governmentdenies any such motive.

The swampland's oil provides 70 percent of state income but,like much of the rest of Nigeria, the region has never seen muchdevelopment. Its roads are pot-holed and villages polluted fromoil spills.

"Many angry young men still support the militants becausethe government is not addressing their grievances," said AlagoaMorris, an environmental activist in the Delta. "They work foranyone who supports them."

TROOPS

Authorities have responded by sending troops to protect oilfacilities, a move residents say might fuel tensions asvillagers will likely see them as invaders sent by Buhari.

"The militarisation of the Delta makes it worse," saidMorris. "People see that the government is only interested inthe oil production, not their grievances."

A security official said Tompolo's men were probably behindthe sub-sea attack. Activists say it could have been the work ofother ex-rebels frustrated about the region's poverty.

Tompolo has disappeared from public view since the arrestwarrant was issued, and his spokesman, Paul Bebenimibo, couldnot be reached for comment.

He had links to the Movement for the Emancipation of theNiger Delta (MEND), one of the most powerful militant groups,which attacked oil facilities and kidnapped expatriate workers.

A previously unknown group called the Niger Delta Avengershas claimed responsibility, warning Buhari of more troubleunless he fulfils a long list of demands such as startingdevelopment and cleaning up polluted villages.

Reuters was unable to contact the group or verify itsstatement. In total, ten oil and gas pipelines or otherfacilities have been attacked in the Delta since the start ofthe year, security experts say.

DELTA

Tension has been building in the Delta since Buhari defeatedpresident Goodluck Jonathan, a Christian southerner from theregion, in presidential polls a year ago.

The government has extended the amnesty but vowed to shiftthe focus to job training and away from cash payments, which inthe past were collected by "generals" for their "boys".

So far, the attacks have not been as severe as the previousinsurgency. But diplomats worry that Delta activists are teamingup with secessionists in the southeast, where Ibgo people whoproclaimed an independent state called Biafra sparked a 1967-70civil war in which more than a million people died.

In the Avengers statement, the group demanded the release ofa pro-Biafra leader jailed since October.

On Thursday, groups of former militant leaders denounced thepipeline attacks but also urged Buhari to expand the amnesty to"some of our brothers who are still in the creeks" - still ahideout for militants, pirates and kidnappers.

They also told Buhari the amnesty should be extended to 2019to give young men time to receive job training.

The government has said it wants to set up vocationalcentres to train up to 10,000 people annually. But little hashappened as the oil price slump has undermined spending plans. (Additional reporting by Libby George in London, Felix Onuah inAbuja, Anamesere Igboeroteonwu in Onitsha and Tife Owolabi inYenagoa; Editing by Ed Cropley and Peter Graff)

More News
25 Jan 2022 17:05

LONDON MARKET CLOSE: Europe follows NY rebound but Fed jitters linger

LONDON MARKET CLOSE: Europe follows NY rebound but Fed jitters linger

Read more
25 Jan 2022 09:47

Capricorn Energy's Egyptian acquisition exceeding expectations

Capricorn Energy's Egyptian acquisition exceeding expectations

Read more
25 Jan 2022 00:01

UK government commits 32 mln pounds for floating wind projects

By Nina ChestneyLONDON, Jan 25 (Reuters) - The British government said on Tuesday it will commit nearly 32 million pounds ($42 million) to fund the development of floating offshore wind projects to help lessen its dependence on gas, the price of w...

Read more
24 Jan 2022 21:23

Lyondell Houston oil refinery sale in focus ahead of investor call

By Erwin SebaHOUSTON, Jan 24 (Reuters) - Chances for a quick sale of LyondellBasell Industries' Houston oil refinery are dwindling with several other refineries competing for buyers, said people familiar with the matter on Monday.The petrochemical...

Read more
21 Jan 2022 19:17

UPDATE 1-Royal Dutch no more - Shell officially changes name

(Adds details, background)By Ron BoussoLONDON, Jan 21 (Reuters) - Shell officially changed its name on Friday, ditching "Royal Dutch", which has been part of its identity since 1907, following plans to scrap its dual share structure and move its h...

Read more
21 Jan 2022 18:48

Shell officially drops Royal Dutch from name

LONDON, Jan 21 (Reuters) - Shell said on Friday it has officially changed its name from Royal Dutch Shell Plc to Shell Plc as part of its plan to scrap its dual share structure and move its head office from the Netherlands to Britain."Shell annou...

Read more
21 Jan 2022 09:38

LONDON BROKER RATINGS: Berenberg ups Rentokil; Citi cuts Computacenter

LONDON BROKER RATINGS: Berenberg ups Rentokil; Citi cuts Computacenter

Read more
21 Jan 2022 08:30

UPDATE 6-Oil majors TotalEnergies and Chevron withdraw from Myanmar

* Another example of Western firms leaving after coup* Had talked with French, U.S. about targeted sanctions* Was not possible to implement them* Sees junta as here to stay (Adds comment by TotalEnergies, details, bullet points)By Benjamin Mallet an...

Read more
21 Jan 2022 08:30

UPDATE 5-Oil majors TotalEnergies and Chevron withdraw from Myanmar

(Adds PTTEP's reaction, Shell)By Benjamin Mallet and Florence TanPARIS, Jan 21 (Reuters) - Oil majors TotalEnergies and Chevron Corp, partners in a major gas project in Myanmar, said on Friday they were withdrawing from the country, citing the wor...

Read more
20 Jan 2022 20:34

Mexico's Pemex says closes acquisition of Deer Park refinery

MEXICO CITY, Jan 20 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) on Thursday said it had finalized the complete acquisition of the Deer Park refinery in Texas from Royal Dutch Shell, its longstanding partner at the facility.Pe...

Read more
20 Jan 2022 19:21

UPDATE 3-Shell to supply crude to Pemex's Texas refinery under long-term pact

* Formal handover completed and new directors installed* Mexico to receive up to 230,000 bpd of gasoline, fuels (Adds transfer boosts Pemex in negotiations with suppliers)By Adriana Barrera and Ana Isabel MartinezMEXICO CITY/HOUSTON, Jan 20 (Reuters...

Read more
20 Jan 2022 19:21

UPDATE 2-Shell to supply crude to Pemex's Texas refinery under long-term pact

* Formal handover completed and new directors installed* Mexico to receive up to 230,000 bpd of gasoline, fuels (Adds statements by Shell, Pemex confirming agreement)By Adriana Barrera and Ana Isabel MartinezMEXICO CITY/HOUSTON, Jan 20 (Reuters) - M...

Read more
20 Jan 2022 17:45

Shell, UK regulators revive talks on North Sea gas field development

By Ron Bousso and Dmitry ZhdannikovLONDON, Jan 20 (Reuters) - Royal Dutch Shell and British regulators have revived talks on developing the Jackdaw gas field in the North Sea as the government struggles with soaring gas and power prices, company a...

Read more
20 Jan 2022 17:26

Pemex taking control of Texas refinery on Thursday, sources say

MEXICO CITY, Jan 20 (Reuters) - Mexican state oil company Petroleos Mexicanos (Pemex) will on Thursday take control of the Deer Park refinery in Texas, after concluding the purchase of Royal Dutch Shell's half of that plant, two people familiar wi...

Read more
20 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 down as BP, Shell and AB Foods weigh

LONDON MARKET CLOSE: FTSE 100 down as BP, Shell and AB Foods weigh

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.