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Shell Stops Some Nigerian Production Over Sabotage


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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