Shell Petroleum Development Company (SPDC) says the Trans Forcados pipeline facility will remain closed after a fire occurred at a section of the installation in Delta state on Sunday.
However, a spokeswoman for the company told Reuters that no force majeure has been declared on exports from the pipeline.
Shell manages the Trans Forcados crude oil terminal while Heritage Energy Operational Services Limited operates the pipeline affected.
Collins Edema, a resident of Yeye community, Burutu local government area of the state said as at Tuesday, the “fire is still raging”.
“The pipeline is long due for replacement and leaks from time to time.
“Repairs were going on there on a leaking portion when the fire broke out, burning the pipeline, the pumping machine and other equipment the contractors were using for repairs.”
Exports from the Trans Forcados terminal estimated at 250,000 barrels a day could be in jeopardy if the shut-in is extended.
In December 2018, the Nigerian National Petroleum Corporation (NNPC) revealed that the country lost about N288 billion ($800 million) due to incessant breaches on the Trans Forcados Pipeline.