Monday, November 29, 2010

Shell: Ramping Up Nigeria Output After Oil Pipeline Repaired

Royal Dutch Shell PLC (RDSB) said Thursday it was ramping up oil production in Nigeria's Niger Delta after repairing a pipeline damaged by oil thieves.

A company spokesman said repairs on the Trans-Niger Pipeline, which supplies Bonny Light oil, have been "completed and production is ramping up."

Friday, the damage had led Shell to declare force majeure on supplies from the pipeline, which the spokesman said was still in place as of Thursday. The declaration protects oil companies if they default on supply commitments.

The problem "was caused by crude theft activities. Unknown persons drilled holes in the pipeline," the spokesman said.

It's unclear how much production was affected. But prior to the force majeure, Nigeria was planning to export six full cargoes and one half-sized cargo of Bonny Light for December.

-By Benoit Faucon, Dow Jones Newswires;

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