Floods threaten Nigeria’s oil, gas exports in Niger Delta

Floods in Rivers, Delta and Bayelsa states have placed Nigeria’s oil and gas facilities at severe risk of shutting down production, National Daily has gathered.

As of October 2022, the Ogba/Egbema/Ndoni communities in the Omoku local government area of Rivers state are flooded and have recorded the destruction of properties as well.

Companies like Shell Petroleum Development Company, Nigerian Agip Oil Company, and TotalEnergies, have facilities in Omoku, thereby placing these facilities at risk with the flooding in the town.

The Ohaji/Egbema communities in Imo state are also flooded, placing oil and gas facilities owned by Waltersmith Petroman at risk. The onshore gas field project, Assa North Ohaji South, currently being developed by the Nigerian National Petroleum Company (NNPCL), Shell, Nigerian Agip Oil Company, and Total Exploration and Production Nigeria, could also be at risk as it is located in the same locality.

According to an oil company staff, as of October this year, the most affected communities in Rivers state are Orashi and Omoku.

Omoku is known for its rich oil and gas deposits and the community also supplies natural gas to Nigeria Liquefied Natural Gas (NLNG) Limited, which is already operating at 70% capacity. It is possible that the flooding could also affect output at NLNG.

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In Bayelsa state, another IOC staff member said it is not just onshore oil and gas production sites that are at risk due to flooding.

The IOC staff also cited adverse effects on the Bayelsa state due to other issues like drilling services, which will be on hold until water from the flooding recedes.

Our sources also indicate service companies that usually come to service equipment on onshore oil and gas production sites can no longer gain access into the state largely due to the fact that roads leading from Delta state and Rivers state are currently cut off due to flooding.

According to our source “It is a ripple effect because if service companies are not able to reach onshore sites to maintain equipment, the equipment could develop faults and if that happens, work will be stalled as production cannot take place.”

No company would want to operate in a flooded environment, hence expect the production facilities to tend to shut down.

President Buhari has said that flooding in Nigeria has been catastrophic, especially in Bayelsa State where more than 700, 000 people in 300 communities and villages have been displaced.

The Nigerian Government now plans to send a delegation to Cameroon to initiate a bilateral discussion with the Cameroonian authorities on the periodic opening of the Lagdo Dam.