(Ecofin Agency) - In Nigeria, the activities of the militant group, Niger Delta Avengers on oil facilities in Bayelsa State have prohibited Agip, Aiteo and Shell’s operations in the state.

Production by Agip and Aiteo from May 2016 is at 140,000 bpd, as a daily estimated $6.72 million has been lost by the two operators as a result of the attacks on oil export pipelines being operated by the companies.

Aiteo is the operator of the Nembe Creek Trunk Line, which transports crude to the Bonny export terminal. The line was attacked by the militants on May 28, shutting in about 75,000 bpd production.

Shell also depends on this line, to convey crude from its oilfields in Bayelsa, but the attacks had forced the company to declare a force majeure on its Bonny Light crude blend.

Eni has said that its subsidiary, Nigerian Agip Oil Company (NAOC)’s production has been reduced by 65,000 bpd following attack on its pipeline in Bayelsa, last week Friday.

“The total deferred production due to the attack is 65,000 barrels of oil equivalent daily. There is no further impact on production, since all production from the swamp area has already been stopped days ago,” Eni’s Media Relations Unit told Sahara Reporters.

As a matter of fact, Agip, Shell, Aiteo and other oil companies operating in Bayelsa cannot export crude till the damaged export lines are restored, and there are no clues as to when the renovation works can begin or how as the Niger Delta Avengers has warned the affected oil firms to not to effect any repairs until their demands are met.

The shutdown of production in the weeks to come will affect government’s revenue as 13% of income generated from crude sales is paid to each oil producing state in line with the quantity produced that month.

Anita Fatunji