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Shell Nigeria Declared Force Majeure for April and May Delivery

04-23-2008

Shell Nigeria announces that it has shut in 169,000 b/d crude production from Bonny Light oil fields due to the attack on main pipeline at the export terminal.

The force majeure announcement came on Monday for April and May crude delivery contracts from its 400,000 b/d Bonny fields effective yesterday. 

SPDC operates a joint venture involving Nigeria National Petroleum Corp. with a 55% stake, Royal Dutch Shell (RDSB) with a 30% stake, Total SA (TOT) with 10% and Agip, a unit of Italian oil company Eni SpA (E), with 5%.

The move to shut in some production from the fields follows an attack by an armed group on the Greater Port Harcourt Swamp pipeline in SPDC's eastern operations area, Rainer Winzenried, spokesman for SPDC, said Monday.

According to IEA, (International Energy Agency's) estimate, Nigerian oil production is decreased by 500,000 b/d because of the frequent militant attacks in the Delta. Nigeria has the production capacity of 2.47 mbd. NNPC officials gives a near 3 mbd output capacity.