Royal Dutch Shell PLC shuts down major pipeline running in Nigeria; blames thefts for breaks
By Associated Press, Updated: Friday, May 4, 5:23 PM
LAGOS, Nigeria — Royal Dutch Shell PLC says it has shut down a major pipeline running through Nigeria’s oil-rich southern delta because it had been repeatedly targeted by thieves.
Shell issued a statement late Friday saying the shutdown would cut off production of about 60,000 barrels of oil a day from its Nigerian subsidiary. It said thieves have repeatedly cut into its Nembe Creek Trunkline, causing damage and leaks in the area.
Shell produced about 974,000 barrels of oil a day in 2011 in Nigeria. It declared a “force majeure” warning — meaning it is impossible for the company to cover the promised supply from the field.
Though militancy in the region has dropped since a 2009 amnesty program, foreign firms say oil thefts from pipelines have risen dramatically.
Copyright 2012 The Associated Press. All rights reserved.
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