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Shell Stops Some Nigerian Production Over Sabotage

THE WALL STREET JOURNAL

February 1, 2010

IBADAN, Nigeria (Dow Jones)–Shell Petroleum Development Co., or SPDC, has closed some production following the sabotage on its Trans-Ramos Pipeline in its western operations in Nigeria, a spokesman said Monday.

Precious Okolobo said, “We have closed some production to effect repairs,” on the pipeline, but did not say the quantity of oil shut in. The Trans-Ramos Pipeline produces 100,000 barrels a day and was attacked by militants last June.

SPDC, a subsidiary of Royal Dutch Shell PLC (RDSA, RDSB, RDSA.LN, RDSB.LN), said a leak was observed on Saturday on the Trans-Ramos Pipeline.

It said an investigation team comprising regulators, communities, security agencies and SPDC personnel discovered that the pipeline was sabotaged and there was a leak, adding that some flowstations that produced into the line have been shut down, stopping the leak.

Okolobo did not say when the repairs would be completed for production to restart.

-By Obafemi Oredein, Dow Jones Newswires; 234 2 7510489

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