Nigeria's oil earnings drop as Shell shuts down Bonga field

The Federal Government crude oilearnings have dropped slightly due to the closure of the 200,000 barrels per day capacity Bonga field operated by Shell Nigeria.Shell Nigeria Exploration and Production Company (SNEPCo) confirmed it was responding to an oil leak at the Bonga deepwater facility, approximately 120 kilometers off the Nigerian coast.According to a statement from the company, made available to the Nigerian Tribune on Wednesday, the leak occurred on Tuesday, December 20, during a routine operation to transfer crude oil from Bonga's floating production, storage and off-loading (FPSO) vessel to a waiting oil tanker.'An export line linking the FPSO to the tanker has been identified as the likely source, and has been closed and de-pressurised, halting the flow of oil. Early indications show that less than 40,000 barrels of oil have leaked in total. SNEPCo is now in the process of safely shutting down production at the Bonga field as a precautionary measure,' it said.In his reaction, the Country Chair of Shell Nigeria, Mutiu Sunmonu, said: 'We are sorry this leak has happened. As soon as we became aware of it, we stopped the flow of oil and mobilised our own resources, as well as industry expertise, to ensure its effects are minimised. 'The company stated that regulators like the Department of Petroleum Resources (DPR) and the National Oil Spill Detection and Response Agency (NOSDRA) have been notified of the incident.Nigeria's current quota by the Organi-sation of Petroleum Exporting Countries (OPEC) remains 2.2 million barrels per day (mbpd) and this may have dropped to 2mbpd resulting in shortfall in oil revenue for the country.
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