Attacks Limit Shell’s Output Of Nigeria Oil
July 30, 2008; Page B2
LONDON — Royal Dutch Shell PLC said it won’t be able to meet a significant chunk of its Nigerian oil-export obligations with customers for the next two months after militant attacks on its facilities early Monday.
Shell wouldn’t say exactly how much crude oil would be affected but the action will keep global oil markets short of a key source of Nigerian Bonny crude supply — prized by refiners for its low-sulfur quality that makes it relatively easy to refine — and probably keep oil prices supported.
Shell declared force majeure with customers after assessing the damage caused by attacks on the Nembe Creek and Rumuekpe oil pipelines, said Shell spokesman Rainer Winzenried. The force majeure, expected to last until September, legally protects Shell from not meeting contractual obligations because of factors outside its control.
Oil prices, which rose $1.47 Monday in part on the assaults, fell Tuesday. The light, sweet crude contract for September delivery on the New York Mercantile Exchange fell $2.54, or 2%, to settle at $122.19.
Nembe Creek typically operates at about 130,000 barrels a day of capacity and feeds the Bonny oil-export terminal.
Write to Spencer Swartz at [email protected]
http://online.wsj.com/article/SB121733081312993039.html
This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan - more information here. There is also a Wikipedia segment.
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.
