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Rush to clean major Shell oil spill off Nigeria

By Sophie Mongalvy (AFP) 22 December 2011

LAGOS — Authorities rushed to prevent one of Nigeria’s worst recent oil spills from reaching the West African nation’s shoreline on Thursday, with production from a major Shell field also shut due to the leak.

Shell, which said the leak has been stopped, has estimated that less than 40,000 barrels of crude have spilled into the sea and was deploying ships with dispersants to attack the slick. Planes were also being mobilised.

It was Nigeria’s worst offshore spill since a 1998 Mobil incident, officials said, though onshore leaks have been estimated at levels far worse since that time in the oil-producing Niger Delta.

“It’s about the same level with what happened in 1998 with the Mobil oil spill,” said Peter Idabor, head of the National Oil Spill Detection and Response Agency.

“The oil slicks went down the whole coast line and beyond Nigeria’s borders.”

He said, however, that Nigeria was better prepared this time, with some 210 tonnes of dispersant being prepared to attack the spill, which has spread to an area between 35 and 45 miles (about 55 to 70 kilometres) in size.

He said it was unclear when the oil slick could reach the shore. London-based Oil Spill Response Limited was to be involved in the clean up, Idabor said.

The slick was moving in the direction of Forcados, which is located along the coast of Nigeria’s Delta state, he said.

Nnimmo Bassey, the Nigeria-based head of Friends of the Earth International who has closely monitored spills in the country, called it a major incident and pressed for an independent analysis of the amount of oil leaked.

“We can see a real threat to livelihood to fishermen and local communites onshore,” he said.

The leak occurred Tuesday at Shell’s Bonga field some 120 kilometres off Nigeria, Africa’s largest oil producer and an OPEC member. Production has halted at the field, which has a capacity of 200,000 barrels per day.

The company claimed Thursday that “up to 50 percent of the leaked oil has already dissipated due to natural dispersion and evaporation,” but that figure was impossible to verify independently.

Bassey cast doubt on the figure, saying “I don’t believe that 50 percent would disperse over just less than two days.”

Shell said it was deploying vessels and mobilising planes to fight the spill.

“To accelerate the clean-up at sea, we are deploying vessels with dispersants to break up the oil sheen at sea,” Shell Nigeria head Mutiu Sunmonu said.

“We are mobilising airplanes that will support the vessels in this operation … We are currently working with the Nigerian government to inform local communities and fishermen about the situation.”

Shell said the leak occurred during a transfer of crude to a waiting tanker. The likely source was an export line linking a production vessel to the tanker, it said.

Nigeria has been producing between 2.0 and 2.4 million barrels per day in recent months.

Scores of oil spills have occurred in the country, but most have been onshore, particularly due to pipeline sabotage aimed at stealing crude to sell on the black market as well as militant attacks.

Activists say Shell and other companies have not done enough to prevent oil leaks at their facilities.

The UN released a report in August saying decades of oil spills in the Nigerian area of Ogoniland may require the biggest cleanup ever undertaken, with communities dependent upon farmers and fishermen left ravaged.

Activists say two spills in the Ogoni community of Bodo in 2008 amounted to hundreds of thousands of barrels, but Shell disputes that figure and says it was far lower.

Amnesty International has estimated that if all types of oil pollution in the vast Niger Delta — the country’s oil-producing region — are added up over the past half-century, it would be “on par with the Exxon Valdez every year over the last 50 years.”

Copyright © 2011 AFP. All rights reserved.

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Iraq inks $17 bn gas joint venture deal

By Ammar Karim (AFP) Sunday, 27 November 2011

BAGHDAD — Iraq finalised a $17-billion joint venture deal with Shell and Mitsubishi to capture and process gas from its southern oil fields, at a ceremony at the oil ministry on Sunday.

The deal was signed by Shell CEO Peter Voser, Mitsubishi Vice President Tetsuro Kuwabara and Iraqi Oil Minister Abdelkarim al-Luaybi.

“Today’s event represents a big change in the oil industry,” Luaybi said, adding that the deal constitutes the best use of the gas in line with Iraq’s needs.

“We are pleased to be partners in this project,” said Shell’s Voser.

“Iraq is now an important partner for us in the Middle East,” he said.

Earlier this month the Iraqi cabinet approved the deal which creates the Basra Gas Company, a joint venture to process associated gas from the Rumaila, Zubair and West Qurna-1 fields.

“The company will start its work in a year, and before the end of this year we will deal with the needed procedures related to the company’s administrative structure,” said Ahmed Shamaa, the deputy oil minister in charge of refineries.

“We will also work on completing bilateral agreements signed between the investors,” he said.

Shamaa had previously said that the accord was favourable to Iraq because of the significant amount of gas that can be used for electricity and industry, and revenues that will total $31 billion over the 25-year period.

State-owned South Gas Company will hold a majority 51-percent stake in Basra Gas, while Shell will have 44 percent and Mitsubishi five percent, government spokesman Ali al-Dabbagh said.

He said the total investment would be “$17 billion for a period of 25 years.”

The output capacity of the proposed project will be two billion cubic feet, or 56.6 million cubic metres, per day, Dabbagh said.

Luaybi also said on Sunday that Iraq is waiting for a reply from oil giant ExxonMobil to various letters it has sent the company.

Exxon has signed an oil exploration contract with the autonomous Kurdistan region in north Iraq, angering Baghdad, which says all contracts must be with the central government.

“We sent three letters, two of them from the oil ministry and the third from the office of the prime minister, and we may send a confirmation letter tomorrow,” Luaybi said.

“We are awaiting a reply, and in light of that there will be a clear stance from the ministry and the government,” he said.

Copyright © 2011 AFP. All rights reserved.

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Nigerians seek $1 billion from Shell for oil spills

CHICAGO — A Nigerian tribal king filed a lawsuit in a US court seeking $1 billion from Royal Dutch Shell to compensate for decades of pollution that sickened his people and damaged their lands, his lawyer said Thursday.

The suit was filed a day after the US Supreme Court said it will consider a lawsuit accusing Shell of human rights abuses in Nigeria in a landmark case that could make companies liable for torture or genocide committed overseas.

That case will assess the potential liability of corporations — including multinationals with a US presence — under the Alien Tort Statute, a US law dating back to 1789 that scholars say was meant to assure foreign governments that the United States would help prevent breaches of international law.

The latest case alleges that Shell’s Nigerian operations are “well below internationally recognized standards to prevent and control pipeline oil spills” because the Anglo-Dutch company “has not employed the best available technology and practices that they use elsewhere in the world.”

It cited a recent United Nations report that found that contamination was widespread in the Nigerian Delta after 50 years of oil extraction left groundwater contaminated and hydrocarbons penetrated the soil to depths of five meters.

The suit was brought on behalf of the people of Ogale in the Eleme local government area, where the UN team found the most serious groundwater contamination and people drinking water laced with cancer-causing benzene at 900 times World Health Organization guidelines.

Scientists found an eight centimeter layer of refined oil floating on the groundwater that served the wells. The oil was linked to a spill that had occurred six years earlier and was not properly cleaned up.

A spokesperson from Shell did not immediately return a request for comment.

The 32-page civil complaint was filed Tuesday at the federal court in Detroit, Michigan.

Copyright © 2011 AFP. All rights reserved.

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Shell Nigeria hopes to resume normal production by November

12 October 2011

LAGOS — Oil giant Shell said Tuesday it hopes to resume normal production levels in Nigeria by early November a day after announcing that it may not meet contractual obligations on certain oil exports due to a pipeline attack.

Following the attack on the 50-kilometre (30 miles) Trans Forcados pipeline, the Shell Nigeria joint venture declared ‘force majeure’, freeing it of contractual obligations on certain exports from Nigeria through December.

But Shell said in a statement that repair on the pipeline had begun and that production may resume earlier than previously thought.

“If all goes according to plan, we expect to complete the repair as soon as possible and reopen the line,” Shell vice president in Nigeria Tony Attah said in the statement.

“It means the force majeure we declared on Forcados offtake programme will be lifted late October/early November as soon as Forcados production has returned to normal levels,” the statement said.

The pipeline leak, reported on October 6, was caused by an explosion, Shell said.

Pipeline damage and associated spills are common in Nigeria’s oil-producing Niger Delta region as a result of oil theft that feeds the lucrative black market.

Militants claiming to be fighting for a fairer distribution of oil revenue have also regularly destroyed pipelines, though such attacks have decreased since a 2009 amnesty deal.

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COMMENT BY JOHN DONOVAN – SHELL IN NIGERIA:

Shell’s horrendous track record in Nigeria includes embedding spies in the Nigerian government; paying rival militant gangs; engaging in corruption (not only in Nigeria); arming police spies; undercover activity using a private spy firm (Hakluyt) and associating Shell with murder and human rights abuses. Consequently questions inevitably arise about the background of the militants responsible for the attacks referred to in this article. Has Shell any financial connection with them currently, or in the past? Shell has such a shameful record in Nigeria, including plunder and pollution on an epic scale, that it has even considered ditching the Shell global brand name. Such a radical move would also distance the company from its Nazi past.

Shell in Nigeria shuts in 25,000 bpd of oil


26 September 2011

LAGOS — Anglo-Dutch oil group Shell said Monday it has shut in 25,000 barrels per day of crude in a southern Nigerian oil field due to spills caused by sabotage and theft.

“The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has shut in production from Imo River Field due to a recent upsurge of illegal bunkering and refining activities which have impacted the environment,” the company said in a statement.

“Some 25,000 barrels of oil per day is affected,” Shell said, adding it took the action on August 28 “to starve the illegal bunkerers of crude oil in order to prevent further environmental pollution.”

Theft of crude is commonly referred to as “bunkering” in Nigeria.

Shell said the field which straddles oil-producing Abia and Rivers states, has five flow stations, a gas compressor station and several kilometres of pipelines among other faculties.

The thefts were first noticed in the field two years ago, prompting government security forces to move in to dislodge the perpetrators and destroyed their barges and canoes.

The military deployed in the oil delta has in recent months reported busting hundreds of illegal refineries.

“But the criminal act has now resumed, with crude thieves inflicting hacksaw cuts on pipelines to siphon crude to waiting barges and canoes, some of which can hold as much as 40,000 barrels,” it added.

Pipeline vandalism and associated spills are common in the Niger Delta, Nigeria’s oil and gas producing region, to feed a lucrative black market.

Shell, one of Nigeria’s major oil operators, has seen frequent shut-ins in recent years.

Last month, it was forced to shut down its Utorogu gas plant following a leak on its trunkline in western Niger Delta.

Activists say oil firms such as Shell have not done enough to prevent such incidents.

A UN report in August said decades of oil pollution in the Ogoniland area of the Niger Delta, located in Rivers state, may require the world’s largest ever cleanup.

Nigeria is Africa’s largest oil producer, accounting for 2.3 million barrels of crude per day according to the latest report of the International Energy Agency.

Copyright © 2011 AFP. All rights reserved.

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Shell pipeline explodes in southern Nigeria: spokesman

LAGOS (AFP) — An oil pipeline operated by the Royal-Dutch oil giant Shell that feeds into the key export Escravos terminal in southern Nigeria has exploded, a company spokesman said on Tuesday.

Niger Delta armed group claims Shell attack

LAGOS (AFP) — Niger Delta’s most prominent armed group MEND claimed responsibility Sunday for an attack on Anglo-Dutch oil group Shell’s facilities in southern Nigeria.

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