Shell is investigating allegations of smoke near its Gbaran Ubie oil and gas complex in Nigeria’s coastal Bayelsa state. Residents reported hearing booms and seeing smoke in the region.

The Shell official stated that the event would not result in an immediate operational shutdown. Residents in the adjoining village reported a fire about 0600 GMT, claiming to have heard booms where pipeline repair work was underway.

The Gbaran facility, which started operations in 2010, is by far Nigeria’s most important LNG gas feedstock project, processing about 2 billion standard cubic feet of gas daily.

“We are actively monitoring reports of smoke detected near our Gbaran Central Processing Facility in Bayelsa State. While the source appears to be external to our facility, we are in close communication with regulatory authorities to look into the incident and ensure the safety of the surrounding communities,” a Shell spokesperson said in an emailed statement.

Shell did not immediately reply to reports from local people. Resident Ovie Ogbuku told journalists: “At about 7 a.m. I heard the sound so deafeningly and it shook the foundation of the earth and we ran for our dear lives. The result is the thick smoke you are seeing now.”

Another resident Uche Ede said; “We have no idea of the cause of the explosion but we are grateful no life was lost because it was far away from homes.”

Land operations in Nigeria’s oil-rich Niger Delta are vulnerable to sabotage, theft, and pipeline damage, leading oil companies to abandon such areas in favor of deepwater exploration.

The Nigerian Upstream Petroleum Regulatory Commission has announced the start of the bidding process for 12 oil blocks recently put up for sale. It also marks the beginning of the 2024 Nigeria Petroleum Licensing Round and the continuation of the 2022/2023 mini-bid round.

This was stated in a press release issued by the commission’s CEO, Gbenga Komolafe, on Monday in Abuja. Last month, the commission made the first announcement about the bidding process.

It also waived the signing bonus requirement throughout the bidding process to entice investors to bid on the auctioned oil blocks.

He said, “On behalf of the Federal Government of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission is pleased to announce the commencement of the 2024 Petroleum Licensing Round.”

On the number of blocks for the offer, Komolafe noted, “We have identified 12 blocks that cut across deep offshore, shallow water and onshore terrains to be made available to interested investors.”

According to him, this licensing round represents a key milestone in our commitment to supporting long-term growth and innovation in the energy sector, as well as creating economic prospects for investment to stimulate new exploration and development activities in our petroleum landscape.

He explained that the 2024 Licensing Round will provide an opportunity for domestic and foreign parties to participate in the exploration and development of Nigeria’s hydrocarbon resources. He emphasized that having access to high-quality geological and geophysical data is important to this approach.

Komolafe stated that the National Data Repository of NUPRC, in partnership with multi-client partners, is committed to providing prospective bidders with access to broad and strong datasets to help them make better decisions.

Commenting on the 12-block offer, he stated that it is consistent with the licensing round’s objectives and includes a varied range of exploratory possibilities and discoveries with varying technical and operational preferences.

Komolafe added, “Our goal for this licensing round is to harness innovative exploration techniques and foster partnerships that will enhance our production capabilities and ensure environmental sustainability.

“We anticipate that this initiative will not only expand our operations but also significantly contribute to the global energy supply, aligning with international energy security goals.”