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Pipeline Explosion Disrupts Nigeria’s Oil Production and Exports

by Krystal

A major explosion rocked the Trans-Niger Pipeline, one of Nigeria’s key oil pipelines, late Monday night. The pipeline, which transports crude oil from the Niger Delta to the Bonny terminal, is operated by Shell Petroleum Development Company (SPDC). The explosion occurred in Bodo, located in Gokana Local Government Area of Rivers State, causing a massive fire in the pipeline’s section there.

As of early Tuesday, local authorities have not confirmed the cause of the explosion. It remains unclear whether it was due to vandalism, theft, or another incident. However, speculation is already growing that the blast could be the result of sabotage, especially given recent threats from militant groups in the region. These groups have warned of attacks on oil infrastructure in Rivers State, amid ongoing tensions between the state and the federal government over the allocation of federal funds.

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The pipeline carries crude oil from the oilfields in Rivers and Bayelsa states to the Bonny export terminal, which handles Bonny Light, one of Nigeria’s top-quality crude oils.

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This explosion comes at a time when Nigeria had recently boosted its oil production and exports. In February, Nigeria reportedly exceeded its OPEC+ production target, benefiting from higher exports and increased demand, particularly from the new Dangote refinery.

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For years, Nigeria struggled to meet its OPEC+ quotas due to issues such as oil theft, pipeline vandalism, and delays in launching new projects. These ongoing challenges have hindered the growth of Nigeria’s oil industry and contributed to the departure of major oil companies from the country.

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