A Review of the Nigerian Energy Industry

Eni shuts Nigeria swamp output

25 March 2013, Lagos – Italian energy giant Eni has declared force majeure and ordered the closure of its onshore activities in the Swamp area of the Bayelsa State in Nigeria due to frequent thefts from pipelines.

The company disclosed at the weekend that it had declared force majeure during the night between 21 and 22 March, due to “intensified bunkering, consisting in the sabotage of pipelines and the theft of crude oil, which has recently reached unsustainable levels regarding both personal safety and damage to the environment.”

Eni produces between 35,000 to 40,000 barrels of oil equivalent per day from Nigeria’s Swamp area. The company’s equity share in the output is about 7000 to 8000 bpd.

Losses occasioned by bunkering have reached peaks of 60%, the company disclosed.

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  • This is certainly not good for Nigeria and unfortunately, the government appears at a total loss how to tackle the incidence of crude oil theft and vandalism.