Shell Venture to Invest $1.5 Billion in New Nigeria Pipeline

from The Wall Street Journal..

June 21, 2013

By JAMES HERRON and SARAH KENT

LONDON—A joint venture led by Royal Dutch Shell RDSB.LN -0.12% PLC said Friday it will invest $1.5 billion on a new pipeline in Nigeria in a bid to reduce oil theft that has caused serious environmental damage in the country and disrupted crude production.

The new pipeline, called the Trans Niger Pipeline Loop-line, should help reduce oil spills in the Niger Delta because it will “bypass a whole area where there has been a significant quantity of oil theft,” in the Ogoniland region of Nigeria, said a Shell spokesman.

…….

The success of the new pipeline could very much depend on the technical measures Shell puts in place to make it a more difficult target for theft, said Thomas Horn Hansen, an analyst at consultancy Risk Intelligence. While shifting the location of the pipeline could reduce theft in the short term, organized crime of the type that operates in the Delta might not be deterred in the long term, he said.

…….

SPDC is also planning on investing $2.4 billion in five new Nigerian gas projects, collectively called Gbaran-Ubie Phase Two.

Link to the entire article:  http://online.wsj.com/article/SB10001424127887323393804578559323475377146.html?KEYWORDS=Nigeria#articleTabs%3Darticle

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