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Shell Says Nigeria Militant Attacks to Hurt Earnings

Bloomberg

 

 

Shell Says Nigeria Militant Attacks to Hurt Earnings (Update1) 

By Alexander Kwiatkowski

Sept. 19 (Bloomberg) — Royal Dutch Shell Plc, Europe’s biggest oil company, said an escalation of militant attacks against its oil and gas facilities in Nigeria will hurt earnings.

The latest raids “will ultimately add up to increased equipment downtime, repair and remediation cost and deferred earnings,” Shell spokesman Rainer Winzenried said in an e- mailed statement today.

The Movement for the Emancipation of the Niger Delta, the main militant group in the Niger Delta, stepped up its “oil- war” against foreign companies operating in the region this week. Attacks by armed groups have cut more than 20 percent of Nigeria’s crude exports since 2006.

MEND, as the group is known, claimed at least four attacks on Shell oil pipelines, flowstations and other facilities. Two people were killed in an attack on Shell’s Alakiri flowstation and gas plant on Sept. 15. The Greater Port Harcourt Swamp Line, Orubiri flowstation and Rumuekepe pipeline were also targeted, according to the Shell statement.

Shell’s Nigerian joint venture “is closely monitoring the situation and continues to take all necessary measures to ensure the safety of staff and contractors,” the statement said. The company is “concerned about the resultant damage to oil and gas facilities and possible environmental damage.”

MEND says it’s fighting on behalf of the inhabitants of the Niger Delta, who have yet to share in the oil wealth of the region.

To contact the reporter on this story: Alexander Kwiatkowski in London at[email protected]

Last Updated: September 19, 2008 04:09 EDT

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