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Royal Dutch Shell issues production warning in Nigeria after sabotage on major pipeline

By Associated Press, Updated: Monday, June 13, 4:39 PM

LAGOS, Nigeria — Royal Dutch Shell PLC is warning that it can’t meet forecast production in Nigeria after sabotage on a main pipeline in the country’s southern delta.

A Shell spokesman said in a statement Monday that the company’s Nigerian subsidiary has declared “force majeure” on its Bonny Light crude shipment for June and July. The term is used when it is impossible for an oil company to cover the promised supply from the field.

Tony Okonedo said an investigation found that the damage to the Trans Niger pipeline was caused by hacksaw cuts, suggesting black-market thieves tapped into the lines. The pipeline is a major conduit through Nigeria’s oil-rich region of swamps, mangroves and creeks almost the size of South Carolina.

Nigeria is a top supplier of crude to the U.S.

Copyright 2011 The Associated Press. All rights reserved.

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