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Reuters: Shell says repairs start at Nigerian oil pipeline

Mon Jun 11, 2007 1:08 PM BST

LONDON, June 11 (Reuters) – Royal Dutch Shell Plc said on Monday repairs are under way after a leak at a Nigerian oil pipeline forced the company to cut output by 77,000 barrels per day last month.

The leak occurred on May 25 on the Nembe pipeline in Nigeria’s southern state of Bayelsa and Shell, Nigeria’s largest foreign producer, had been in talks with community members to get access to the site.

“We are in the area and progressing with trying to get production up and running,” said Shell spokeswoman Eurwen Thomas. “Repair work is in progress.”

Shell was unable to predict when production would resume through the pipeline, which feeds Nigeria’s Bonny export terminal, Thomas said.

Supply disruptions in Nigeria, the world’s eighth-largest oil exporter, have boosted world prices this year.

Oil companies have detailed about 772,000 bpd of shut Nigerian production because of militant attacks and sabotage, about 26 percent of the country’s capacity.

© Reuters 2007. All Rights Reserved.

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