NIGERIA: Royal Dutch Shell resumes production of about 47,000 barrels per day at two of its Nigerian flow stations after villagers who stormed the facilities leave.

Record ID: 234746

  • Title: NIGERIA: Royal Dutch Shell resumes production of about 47,000 barrels per day at two of its Nigerian flow stations after villagers who stormed the facilities leave.
  • Date: 3rd November 2006
  • Summary: (W3) LAGOS, NIGERIA (NOVEMBER 3, 2006) (REUTERS - ACCESS A) FELIX CHUKWUMA, ENERGY ANALYST (SOUNDBITE) (English) FELIX CHUKWUMA, ENERGY ANALYST, SAYING: "Shell is trying to win back the credibility they lost during the military era by appearing to be approaching the communities to resolve conflicts they have, but we are hearing from communities that some of these approaches are cosmetics and do not really go down to the heart of the matter of grievances they have with the oil corporations. But with the withdrawal, it would really reduce the prices of oil in the international market. But the fundamental problems are still there. As we speak, yesterday we heard that some other oil workers were ceased which means we are going to be having these up and down graph relationship which is definitely affect the prices because the west especially the United States is dependent on Nigeria oil with the crisis in the middle East."
  • Embargoed: 18th November 2006 12:00
  • Keywords:
  • Location: Nigeria
  • Country: Nigeria
  • Topics: Domestic Politics,Energy
  • Reuters ID: LVAE538SJTEVCHH6T51AIEGOR21E
  • Story Text: Royal Dutch Shell resumed production of about 47,000 barrels per day at two of its Nigerian flow stations as villagers left the company's facilities this week.
    Villagers stormed four facilities, including three operated by Shell, last week to press for contracts to supply speed boats and food to facilities. One flow station remained shut while Chevron reopened its facility earlier this week.
    But analysts are sceptical on the measures adopted by Royal Dutch Shell and other oil corporations at resolving disputes with host communities.
    Speaking to Reuters on resumption of Royal Dutch shell production, Felix Chukwuma energy analyst says it's a temporal relief to the main problem of multinational oil corporations and communities.
    "Shell is trying to win back the credibility they lost during the military era by appearing to be approaching the communities to resolve conflicts they have, but we are hearing from communities that some of these approaches are cosmetics and do not really go down to the heart of the matter of grievances they have with the oil corporations. But with the withdrawal, it would really reduce the prices of oil in the international market. But the fundamental problems are still there. As we speak, yesterday we heard that some other oil workers were ceased which means we are going to be having these up and down graph relationship which is definitely affect the prices, because the west especially the United States is dependent on Nigeria oil with the crisis in the middle East" Chukwuma said.
    Oil steadied on Friday after sliding below $58 as Nigeria crude production increased.
    Violence in the worlds eight largest oil exporter has cut oil output by 500,000 bpd since February and has helped keep prices at historically high level Armed attackers kidnapped a Briton and an American on Thursday from an oil industry ship off the coast of Nigeria's southern state of Bayelsa, authorities said.
    There was no immediate claim of responsibility for the abduction, the latest in a wave of attacks on foreigners in the world's eighth largest oil exporter.
    The violence has forced hundreds of workers to pull out and cut oil output by 500,000 barrels a day since February.
    "Two PGS employees are kidnapped -- one American and one Briton. We are doing everything we can to resolve this and have mobilised our emergency team," said Ola Bosterud, a spokesman for Petroleum Geo-Services in Oslo.
    "We have not received any demands from the kidnappers."
    The gunmen came in six boats in the early hours of Tuesday morning and took only the two men, leaving other members of the ship's crew unharmed.
    PGS is an oil service company specialising in exploration using seismic surveys.
    Bayelsa is one of Nigeria's top oil producing states at the heart of the Niger Delta, a vast wetlands region which is home to all of the OPEC member nation's petroleum wealth. Ends.
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