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Shell: New oil, gas project online in Nigeria

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The Associated Press July 7, 2010, 1:10PM ET

LAGOS, Nigeria

Royal Dutch Shell PLC says it has started producing oil and natural gas from a new project in Nigeria’s southern delta.

Shell issued a statement Wednesday saying its Gbaran-Ubie project will produce 70,000 barrels of oil a day and 1 billion cubic feet of natural gas a day when fully operational next year. Shell says the project took five years to build and encompasses five oil and gas fields across Bayelsa and Rivers state.

Shell, which discovered oil in Nigeria 50 years ago, remains the dominate foreign oil major in the West African nation. Its Nigerian subsidiary has faced regular attacks by militants who have targeted pipelines, kidnapped petroleum company workers and fought government troops since 2006 over the Niger Delta endemic poverty.

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