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Royal Dutch Shell Shuts Down Major Crude-Oil Pipeline In Nigeria Due To Fire

( – Shell Petroleum Development Company of Nigeria Limited or SPDC, a subsidiary of Royal Dutch Shell plc (RDS-A,RDSA.L,RDSB.L,RDS-B), said in a statement Sunday that it has shut down the 28-inch Bomu-Bonny Trunkline after it discovered a fire earlier in the day.

The pipeline conveys crude oil to Bonny Terminal. The company has deferred 150,000 barrels per day of production due to the incident.

The fire is said to have been caused by a burning vessel which is alleged to be involved in stealing crude oil from the pipeline. The burning vessel is currently engulfed in raging flames and thick smoke.

SPDC shut the major pipeline that is part of the Trans-Niger Pipeline, which itself has been the target of crude theft activities.

“A burning vessel, thought to be involved in the theft of crude oil from the line, was sighted near the incident site, close to Okololunch community in the Eastern Niger Delta,” Shell’s Corporate Media Relations Manager Tony Okonedo revealed in the statement.

Okonedo added that SPDC is mobilizing to fight the fire, investigate the cause and carry out repairs. The company noted that sabotage and crude oil theft were also the cause of 11,806 barrels spilled from SPDC facilities in 118 incidents last year.

RDSA.L closed Friday’s regular trading on the London Stock Exchange at 2,142.00 pence, down 22.00 pence or 1.02% on a volume of 3.77 million shares.

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