The tranquile peace in the Niger Delta may have been shattered as a militant group has attacked an oil facility belonging to Conoil.
The Niger Delta militant group called Koluama Seven Brothers (KSB)confirmed it blew an oil pipeline at Conoil’s Angle 2 field located in Koluama, Bayelsa State.
The group also warned it would execute more attacks, if its grievances were not addressed.
Another militant group, War Against Niger Delta Exploitation (WANDE) had late last year threatened to disrupt the 2019 elections if the Federal government fails to show commitment to the development of the region.
Storm in a teacup ?
Some oil and gas professionals have tagged the recent event, an isolated one, since it occurred in the outskirts of Bayelsa State, and at a small production facility. Others however maintain it could begin a fresh series of attacks in the region, which has been relatively peaceful in over two years.
Implications of renewed hostilities
Renewed attacks, could have dire consequences on several parts of the economy as a whole. Crude oil earnings, are a key source of government revenue, as well as foreign exchange. Weak growth in the oil sector, led to the country slipping into recession in 2015. While it has since recovered, growth in the oil sector remains weak, and has led to the lagging growth in the larger GDP figures as a whole.
Investors will also play a closer attention to listed upstream operators Seplat and Oando. Attacks on the Trans Forcados pipleine, led to Seplat recording heavy losses in 2016.