Niger Delta Avengers launch 3 attacks on Nigerian oil infrastructure

The militant Niger Delta Avengers group has claimed it is responsible for three new attacks on Nigeria's oil infrastructure in the Niger Delta area. They promise to cut production to zero. The attacks are putting pressure on Nigeria's already strained finances. The Nigerian Air Force is deploying more fighter aircraft, helicopter gunships and surveillance aircraft in the region. The army has also moved reinforcements into the swampy area.

The Niger Delta Avengers (NDA)publicly announced their existence in March 2016. The group have attacked oil producing facilities in the area causing oil terminals to shut down. Nigeria oil production is at its lowest level in 20 years. The NDA wants to create a sovereign state in the area. The group claims that oil firms are responsible for pollution and the poor swampland region does not reap any benefit from the oil operations. It boasted that its attacks had reduced Nigerian oil production to just 800,000 barrels per day from 2 million, without killing anyone.

The NDA reported on its Twitter account that it had blown up a pipeline in Bayelsa state owned by the Italian ENI. This happened just hours after another attack on an ENI pipeline as well as one owned by Shell Petroleum Development Company of Nigeria. Shell confirmed that its 250,000 barrels a day Forcados pipeline had been hit and was leaking. The pipe was shut down in February and undergoing repairs but the new strike will complicate matters. The NDA warned ENI not to start repairs on their pipelines or they would regret it. ENI had no comment on the attacks or threat.

The president of Nigeria Muhammadu Buhari a Muslim from the north of Nigeria cancelled what would have been his first visit to the Delta region since taking office. NDA accuse Buhari of ignoring local problems and of never having visited the southern Christian region. Buhari may fear for his security if he were to travel to the Delta region.

The new attacks follow upon a series of bombing that have hit Chevron, Agip, and NNPC oil and gas installation across the Delta during the last few days. On Wednesday the NDA also used their Twitter account to announce that he destroyed two Chevron oil wells. The group refused to attend a meeting convened by the federal government saying:"The Niger Delta stakeholder's meeting is an insult to the people of Niger Delta. What we need is a Sovereign State not pipeline Contracts," 

The pipeline attacks and the drop in oil prices have hurt the Nigerian economy. There is an acutefuel shortage because of its lack of refineries. It has to import petroleum products at international prices but has been selling it at subsidized prices, the difference has to be paid to importers. In May of 2016 the price of petrol rose by about three quarters angering many. Labor unions called decision "criminal" and called for a strike but later cancelled.

Nigerian president Buhari

Egypt signs oil deal with rival to independent Libyan National Oil Company

International oil companies so far have dealt only with the National Oil Company(NOC) based in Tripoli that has maintained a position of neutrality between the two regimes.

The internationally-recognized House of Representatives (HoR) has set up its own rival National Oil Corporation in the east in the hope of keeping all the oil revenues for itself no doubt. So far over the course of almost a year none of the larger international oil companies have been willing to deal with this HoR creation. However, now the eastern -based NOC has reportedly signed a deal to export 2 million barrels of oil to Egypt a month to the Egyptian General Petroleum Company.

The UN and the international community have called for respecting the neutrality of the two main sovereign bodies that give Libya whatever unity it still has, the NOC and the Central Bank of Libya(CBL). This move is particularly worrisome since with the advent of the new Government of National Accord(GNA) the UN and the international oil companies will expect that the NOC will come under the control of the new GNA. Egypt says it supports the GNA. This action directly challenges the GNA by signing a deal with a company under the control of a government that should dissolve and the HoR would become part of the new government. The move makes it appear that Egypt thinks that there might be an actual split of Libya into two separate areas. As a Libya Herald article puts it:The international community are fearful that an effective duplication of sovereign institutions would further weaken the Libyan state and make the current political split of Libya irreversible.

The NOC that is based in Tripoli has the right to take legal action against the eastern oil company and the party in Egypt that signed the deal, the Egyptian General Petroleum company. The NOC(Tripoli) said: “Any operations that are conducted outside the legal validity represented in the National Oil Corporation whose headquarters are located in Bashir Sadawai Street in Tripoli are considered an explicit breach of the law.” It is not clear how the NOC could enforce any decision against the eastern NOC at present. The Tripoli NOC is recognized by such large international traders as Glencore and the Vitol Group. They may have problems loading crude at eastern ports as the HoR wants tankers to register with their eastern NOC.

Oil production in Libya is down about 80 percent from 2011 when the Gadaffi government was toppled. In November Libya pumped about 375,000 barrels a day. The decline in oil prices is creating a budget crisis for both rival governments..

The Italian oil major Eni's CEO met with the chair of the Tripoli-based NOC and both said they were pleased with the recent LPA and the new Government of National Accord. Both felt the new GNA might help stabilize the country. Chair of the NOC Mustafa Sanalla said: "I am very pleased that the collaboration with such an important partner as Eni continues without interruption,"