RDSA Shell Plc

   By Obafemi Oredein 
   Special to Dow Jones Newswires 
 

IBADAN, Nigeria--Royal Dutch Shell PLC's (RDSA.LN) Nigerian unit has shut down oil production from its Trans Ramos Pipeline in the swamps of the western Niger Delta, in southern Nigeria, due to leaks.

Bamidele Odugbesan, a spokesman of the Shell Petroleum Development Company, said in a statement on Friday that the company has confirmed four leak points on the pipeline and identified the impacted areas.

"As soon as the leaks were noticed on April 24, SPDC immediately shut down production, deployed containment booms and mobilized its oil spill response teams to clean the sites," Mr. Odugbesan said.

These measures, which Mr. Odugbesan said are SPDC's "standard operating procedures," successfully stopped and contained the spill. He did not say the volume of crude oil that had been lost since the shutdown a month ago.

Mr. Odugbesan said the cause of the leaks is yet to be determined as SPDC is said to be working on further site preparation and mobilization of specialized equipment to the swamps for safe excavation of the pipeline for inspection.

However, a Joint Investigation Visit team comprising security and regulatory agencies as well as community representatives and SPDC personnel was deployed in the sites, he added.

The JIV is expected to return to the sites as soon as possible to complete the investigation process, according to Mr. Odugbesan.

The Trans Ramos pipeline transports crude oil from Shell's southern swamp area to the Forcados export terminal for processing, Mr. Bamidele said.

Nigeria, Africa's largest crude-oil exporter relies on the commodity for over 90% of its foreign exchange earnings and about 70% of government revenue, according to the International Monetary Fund.

A disruption to oil production is bound to negatively affect the country's stuttering economy that recently came out of recession largely due to the fall in crude prices. Oil prices are now rising and Nigeria needs all the dollars it can get for its economic-development programs.

Write to Obafemi Oredein at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

May 25, 2018 11:33 ET (15:33 GMT)

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