BY KUNLE KALEJYE

LAGOS – Oil leak resulting from operational hazard has forced the Shell Nigeria Exploration and Production Company, SNEPCo, to shut down its 200,000 barrel per-day capacity Bonga deepwater facility, approximately 120 kilometres off the Nigerian coast.

Shell may be losing up to $21.47million daily on account of the shut down, with Brent oil price up by 63 cents to $107.36 a barrel yesterday.

If the situation persists, Nigeria is at risk of not meeting its crude oil production of 2.48 million barrels per day in 2011, but revenues may not be so impacted at $70/barrel projections.

The Anglo-Dutch oil major said the leakage occurred on Tuesday, 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 was identified as the likely source, and has been closed and de-pressurised, halting the flow of oil, a statement from the company said yesterday.

Shell Nigeria Country Chair, Mr. Mutiu Sunmonu, commenting on the incident 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 minimized.”