Nigeria pipeline attack forces cut in oil output
Write:
Elisha [2011-05-20]
LAGOS - Rebels from Nigeria's southern Niger Delta blew up a Royal Dutch Shell oil pipeline on Monday, forcing the firm to cut production and helping keep world oil prices near record highs.
The attack was the latest in a campaign by militants that has cut oil output in the world's eighth-largest producer by about one-fifth since 2006.
It was carried out while Shell was trying to repair damage caused by a series of similar attacks last month.
The Anglo-Dutch oil firm said that, after the attack, some oil had spilled from its Nembe Creek trunk line, which carries crude to the Bonny export terminal.
"An overfly this morning showed some oil had spilled into the environment and we have mobilized equipment to contain further spread of oil. We have also shut in some production to stop further spill," the company said in a statement.
The rebel Movement for the Emancipation of the Niger Delta (MEND), one of several groups fighting for local control of oil wealth, claimed responsibility for the attack which it said was aimed against the government of President Umaru Yar'Adua.
It also said it had killed 11 soldiers in an ensuing gun battle but the army denied losing any men.
"Today's attack is dedicated to the administration of Umaru Yar'Adua and (Vice-President) Goodluck Jonathan who have failed after one year in office to ensure peace, security and reconciliation in the Niger Delta," MEND said in an e-mail.
The sabotage campaign, which began in early 2006, has stopped Africa's top oil industry reaching its full potential and has driven up oil prices. The price of crude oil reached $135 a barrel for the first time last week and rose above $133 on Monday.
SECURITY ISSUES
Nigerian Oil Minister Odein Ajumogobia said he expected 175,000 barrels per day of oil production lost as a result of militant attacks to be restored in the coming weeks, but added almost half a million more remained affected by the insecurity.
"We had about 470,000 barrels per day shut in even before these (latest) incidents, which is a direct result of security issues," he told a local television.
Five decades of oil extraction in the Niger Delta have polluted the land and water and enriched corrupt politicians.
Crime and militancy are intertwined in its labyrinthine creeks, with gangs making big profits from kidnappings for ransom and a lucrative trade in stolen oil.
A new government led by Yar'Adua and Jonathan, a native of the delta, took office on May 29 last year promising to tackle the root causes of the instability.
Attacks on oil installations and kidnappings of oil workers have continued and MEND last week accused the government of "insincerity" in its handling of the situation.
Foreign oil companies and the government have engaged local communities in protecting pipelines in an effort to stem vandalism, a policy Ajumogobia said he was keen to continue.
"They are young people who are frustrated. Some of them unfortunately have taken up arms and we are appealing to them to give up their arms," he said.
"We have offered them amnesty so that they can be integrated into society and be useful to society."