Chevron Corp.'s (NYSE: CVX) onshore activities in Nigeria's Niger Delta have been shut down by a militant attack at its Escravos terminal, a company source said on May 26.
A militant group called the Niger Delta Avengers, which has told oil firms to leave the Delta before the end of May, said late on May 25 it had blown up the facility's mains electricity feed.
"It is a crude line which means all activities in Chevron are grounded," the source told Reuters, without elaborating.
A Twitter account with the group's name said late on May 25: "We Warned #Chevron... but they didn't Listen. @NDAvengers just blow up the Escravos tank farm Main Electricity Feed PipeLine."
A Chevron spokeswoman in the U.S. said on May 26 that it was against policy to comment on the safety and security of personnel and operations.
The Avengers and other militants, who say they are fighting for a greater share of oil profits, an end to pollution and independence for the region, have intensified attacks in recent months, pushing oil output to its lowest in more than 20 years and compounding the problems faced by Africa's largest economy.
Abuja has responded by moving in army reinforcements but British Foreign Minister Philip Hammond said this month President Muhammadu Buhari needed to deal with the root causes of the conflict.
Delta residents, some of whom sympathize with the militants, have long complained of poverty in an area producing oil accounting for 70% of national income.
Buhari has extended an amnesty deal signed with militants in 2009 that stepped up funding for the region. But he has cut funding for the amnesty program and cancelled contracts with former militants to protect the pipelines they used to attack.
Industry sources said that Escravos onshore production accounts for roughly a third of its total output, on average 3.8 million barrels per month in 2014, according to the latest available data from the Nigerian National Petroleum Corp.
Projected exports for the first half of 2016 averaged 167,000 barrels per day (bbl/d).
Escravos production was already down by more than 40,000 bbl/d after a May 5 militant attack on a Chevron offshore facility.
Increased violence over the past few weeks has also made international buyers more reluctant to buy Nigerian crude due to fears of loading delays and cancellations.
Recommended Reading
Oceaneering Won $200MM in Manufactured Products Contracts in Q4 2023
2024-02-05 - The revenues from Oceaneering International’s manufactured products contracts range in value from less than $10 million to greater than $100 million.
E&P Highlights: Feb. 5, 2024
2024-02-05 - Here’s a roundup of the latest E&P headlines, including an update on Enauta’s Atlanta Phase 1 project.
CNOOC’s Suizhong 36-1/Luda 5-2 Starts Production Offshore China
2024-02-05 - CNOOC plans 118 development wells in the shallow water project in the Bohai Sea — the largest secondary development and adjustment project offshore China.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
US Drillers Add Oil, Gas Rigs for Third Time in Four Weeks
2024-02-09 - Despite this week's rig increase, Baker Hughes said the total count was still down 138 rigs, or 18%, below this time last year.