Saturday, April 19, 2008

Shell Says Nigerian Pipeline Attack will have Minimal Impact on Oil Production

Shell said the recent attack on an oil supply pipeline in southern Nigeria won't have too much impact on oil production, after it found a leak on a pipeline connected to teh Bonny exports terminal - the largest in Nigeria.

"We discovered there was a major leak on the Greater Port Harcourt swamp pipeline. The leak appears to have been caused by explosives. We have isolated the line preparatory to repairs," Shell spokesman in Lagos Tony Okonedo told AFP. "Small quantities of oil have been shut in to allow for necessary repairs."

Shell is the largest oil exporter in Nigeria, accounting for approximately half the 2.1 million barrels a day output.

The company's pipelines have been under attack frequently over the last couple years, with a terrorist group named Movement for the Emancipation of the Niger Delta (MEND) claiming responsibility.

Shell said oil production has been cut back slightly as a result of the attack, as repairs are being made.

Oil surged to a new record high of $117 a barrel on Friday.

No comments:

Post a Comment