On Friday, the energy giant’s pipeline was attacked yet again by the Niger Delta Avengers, as they are forcing international oil & gas companies to wrap up their Nigerian businesses. The militant group wants energy companies to put an end to oil pollution in the country and to give higher share of crude sales to the locals.

According to Reuters, which cited security sources, the new explosion occurred at Chevron’s crude oil well in Warri. The blast has damaged the Marakaba pipeline, which has resulted in an oil spill in the region. Chevron Corporation has not yet disclosed any information related to the militants attack or the crude oil spill.

This is the second time this month that the terrorists have targeted Chevron. Earlier this month, the company’s facility in the Nigerian Delta was targeted, forcing the shutdown of its 90,000 barrels per day (bpd) Okan offshore platform. The facility was used by Chevron and Nigerian National Petroleum Corporation to collect crude oil from different oil fields.

Following the incident, Chevron evacuated its workers from the facilities and started assessing the damage of the militant attacks and oil spill. The explosions are estimated to cost millions of dollars to the company, which adds to its woes as it is already struggling with the current global crude oil prices.

Niger Delta Avengers Warning

Following the first explosion, Chevron started deploying resources to bring the facility back online. This angered the militant group, which led to the second attack. On May 12, the Niger Delta Avengers warned the company on their website, saying they have found the energy company carrying out repair-works in the region, whereas “we made it clear that no repair works should be done until our demands are fully met.”

The group said that while Chevron and other international energy companies are getting all the basic facilities and luxuries, people of Nigeria are suffering from underdevelopment. They highlighted that Chevron has been operating in the Nigerian Delta for more than the four decades and to date, the company has not suffered any power outages. Whereas, the locals do not have basic amenities such as roads, schools, electricity, or hospitals.

Crude oil and gas sales contribute 70% to Nigerian gross domestic product (GDP). However, only a short proportion of the income from oil export is transferred to the local economy. The Niger Delta Avengers believe the foreign based companies are collaborating with the government to undermine the residents of the country. They have demanded a larger share of revenue for the locals from crude oil export.

Moreover, the terrorist group has also asked the companies to reduce the crude oil pollution and to contribute to the region’s development. Until these demands are not met, the group warns it would continue to attack energy companies in the region.

Shell & Other Energy Companies

The attacks are not only forcing Chevron to shut down its operations in Africa’s biggest economy, but it is also affecting other oil & gas companies such as Royal Dutch Shell plc. In February, the Niger Delta Avengers came in the spotlight when they attacked the Anglo-Dutch company’s Forcados terminal and an underwater pipeline.

Earlier this week, the militant group attacked Shell’s Eja oilfield plant again, which is 15 kilometers away from the Coast of Nigeria. The attack has forced the company to evacuate its workers and to declare force majeure on Nigerian crude.

The militant group is likely to increase its activities in the coming days as they have warned international oil companies to leave the region within the next two weeks. The group mentioned that their aim is not to harm anyone as long as their demands are met.

The attacks by the militant group are forcing energy companies to wrap up their businesses in Nigeria. Shell has already exited the market, while other players such as ConocoPhillips and Total are considering divestiture of assets in the region. The attacks, along with the deteriorating economic and political conditions of Nigeria have reduced the country’s crude oil production by 300,000 bpd to 22-year low.

If the attacks continue in the region, amidst the depressed crude oil market conditions, it is expected that Chevron and other energy giants would leave Nigeria soon. The company can neither afford to lose millions of dollars in oil spills nor put its employees in danger.