Shell Shuts Down Major Oil Pipeline Due to Fire

The company says the pipeline is a target for thieves

   

Shell Shuts Down Major Oil Pipeline Due to Fire

Royal Dutch Shell (NYSE:RDS.A, RDS.B) has shut down an oil pipeline in Nigeria after a section caught fire on Sunday. The company announced that a fire had been detected on the Bomu-Bonny-trunkline, a 28-inch pipeline that carries 150,000 barrels of crude oil to its Bonny Terminal every day, Dow Jones noted.

Company officials said they suspected that the fire might have resulted from thieves attempting to siphon oil from the pipeline.

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The company, which runs the pipeline through a joint venture — Shell Petroleum Development Co. of Nigeria — said thieves had attempted to siphon oil from the Bomu-Bonny trunkline previously.

There were 118 incidents of theft from Shell facilities in Nigeria last year, resulting in a loss of 11,086 barrels of oil. Shell representatives said the local environment would continue to suffer until the thefts from its facilities were brought under control.

A burning ship was sighted near the pipeline fire.

Shares of Royal Dutch Shell moved up more than 1% in Monday morning trading in New York.


Article printed from InvestorPlace Media, http://investorplace.com/2012/10/shell-shuts-down-major-oil-pipeline-due-to-fire/.

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