Chevron has shut down its onshore oil and gas activities in the Niger Delta after a terrorist attack on a power line leading to its Escravos terminal.
The attack has been confirmed by the Niger Delta Avengers terrorists group.
“We Warned Chevron but they didn’t Listen”, read a tweet on the groups official twitter account.
Terrorist Attack Forces Chevron Shutdown
The Avengers are a new radical group that has been targeting major platforms across the region, mainly affecting Shell and Chevron. The group’s attacks have led to the country reaching its lowest level of output over the last two decades.
Chevron Escravos Tank Farm Nigeria
Earlier this month the group had warned oil firms with a bloody ultimatum, to leave the Niger Delta before the end of May or face consequences, but President Muhammadu Buhari responded with further army reinforcements.
The militants had already attacked a Chevron oil pipeline on May 13 and the week before, they had shut down the Okan offshore facility, also owned by Chevron. A Shell pipeline to an export terminal had already been bombed in February.
— Niger Delta Avengers (@NDAvengers) 25 May 2016
Crude oil sales from the Niger Delta account for around 70% of Nigeria’s national income. With the constant attacks, production is estimated to have suffered a major decline, from up to 2.4 million barrels per day to less than 1.6 million bpd. Meanwhile, investors believe production could fall further to 1.2 million bpd.
Nigerian Government Needs To Proceed With Caution
According to Bayelsa state governor Henry Dickson, the federal government needs to act with caution and a military approach cannot resolve the situation. “The way forward is for all stakeholders to discuss the issues and the need for the federal government to tread with caution and not adopt a military approach”, he said on a statement.
According to a January report by IHS on Nigeria, the president is expected to face a series of security and economic challenges this year, with Boko Haram continuing to stage regular suicide bombing attacks and with less resources due to the collapse in oil prices.