Industryweek 5279 Shell Defers Nigeria Exports After Pipeline Sabotage

Shell Defers Nigeria Exports After Pipeline Sabotage

Sept. 23, 2013
"Some 150,000 barrels of oil and 500 million standard cubic feet of gas per day are deferred," Shell said, adding that the pipeline had been forced to close five times since early July due to theft.

LAGOS, Nigeria -- Shell's Nigerian subsidiary said today it has been forced to defer exports of 150,000 barrels of oil per day after thieves sabotaged its main pipeline.

Five hundred million standard cubic feet of gas per day have also been halted, Shell Petroleum Development Co. said in a statement.

Shell (IW 1000/1) said its Trans Niger Pipeline had been shut down for repairs after two separate incidences of crude oil theft in the southern Niger Delta region.

"Some 150,000 barrels of oil and 500 million standard cubic feet of gas per day are deferred," said the company, adding that the pipeline had been forced to close five times since early July due to theft.

Oil theft is a major problem in Nigeria, and Shell has consistently blamed its losses on thieves breaking into its pipelines.

However, environmental activists argue that Shell does not do enough to prevent such incidents and effectively clean up the damage when they do occur.

Talks Come Up Short

Negotiations between Shell and Nigerian residents affected by two oil spills in 2008 failed to reach a compensation deal this month, with residents' lawyers calling the oil giant's settlement offer "insulting."

Sources familiar with the Sept. 13 talks said Shell proposed a settlement of $46 million U.S. Shell and lawyers for the community declined to discuss the total settlement amount.

The Delta region of Africa's largest crude producer is badly polluted from decades of oil spills, and those responsible have often not faced punishment.

Nigeria is the world's-eighth largest oil producer, pumping some two million barrels a day. Shell is the biggest producer in the west African country, where it has been drilling for over 50 years.

Copyright Agence France-Presse, 2013

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