(Ecofin Agency) - In Nigeria, one of the two key pipelines that conveys the Bonny light crude grade for export has been shut down following the discovery of a leak on the pipeline.

This is coming after the completion of the Nembe Creek Trunk line that also transport the country’s main export grade. Sources have said that Bonny Light production from the Aiteo field was also increasing following the reopening of the pipeline.

According to Shell Nigeria, one of the Trans Niger pipeline’s joint venture partner, the pipeline will be shut down for not more than a week.

Shell Petroleum Development Company Ltd (SPDC) is the joint venture (JV) operator of the pipeline with 30% interest alongside Nigerian National Petroleum Corporation (NNPC) with 55%, Total E&P Nigeria Ltd with 10%, and Nigerian Agip Oil Company with 5% interests.

This shut down will result in the shutting in of about 130,000 bpd crude oil export, which will cost the country to lose about $6.716 million daily as the Trans Niger Pipeline, conveys about 180,000 bopd to the Bonny Export Terminal and is among the gas liquids removal infrastructure, critical for constant domestic power generation and liquefied gas exports.

Meanwhile, Angola has now overtaken Nigeria as Africa’s largest crude oil exporter as the latter has reported that its March crude oil production dropped to 1.8 million bpd over 3% from February's more than 2 million bpd, Vanguard news reports.

Anita Fatunji