Revenus drops as Shell shuts oil pipeline

Nigeria’s oil and gas industry is again hurt as Shell said a fire incident has forced it to close a key oil pipeline feeding the country’s strategic Bonny Export Terminal, which militants attacked last week.

The ongoing oil industry challenges are causing multinational oil companies billions of dollars.

SBM Intelligence risk analysts estimate that renewed militant attacks, low oil prices and weak refinery margins have cost Dutch-British Shell and U.S.-based Chevron and ExxonMobil $7.1 billion in the first half of the year, representing about 70 per cent of earnings.

Shell’s spokesman, Precious Okolobo, said the Trans Niger Pipeline was shut down on Monday, to investigate a fire, according to a report by AP.

However, Shell has refused to comment on reports that militants bombed its Bonny crude pipeline on Friday, crippling exports days after they resumed, following months of repairs from a May bomb attack.

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