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Militant Youths Shut Three Oil Flowstations

This Day (Lagos)
NEWS
December 6, 2004
Posted to the web December 6, 2004

By Mike Oduniyi
Lagos
Shell, Chevron lose 100,000 bpd of crude
Crude oil production in the country has again been disrupted after militant
youths, numbering about 200, stormed and forcefully shut down three
flowstations in the swamp of Rivers State.
The oil production facilities belong to Shell and US oil major, Chevron Texaco.
THISDAY checks reveal that their closure effectively cut Nigeria's crude
production by some 100,000 barrels per day (bpd).
In monetary terms, Nigeria and its two joint venture oil partners might be
losing $4 million (N532 million) daily.
It was gathered that the youths from Kula Community in Rivers State, stormed
two of Shell's flowstations in the swamp, Ekulama 1 and 2 (producing 70,000 bpd
of oil) as well as Chevron's Robert-kiri (with output of about 30,000 bpd)
facility in the early hours of yesterday.
The youths are yet to make their demands known as at the time of filing this
report. But a Shell spokesman told THISDAY last night that the youths had
sought audience with top management staff of the oil firm.
"We have not received any formal demand from the youths. We don't know their
grievances. A report has however been made to the zstate authorities while we
are willing to commence dialogue," the official said.
Chevron officials were however, not available for comment.
Yesterday's incident would be the second attack on oil flowstations in the
Niger Delta area in two weeks. Youths from Ojobo community in Delta State had
last week clashed with soldiers in the attempt to storm a rig drilling at a
Shell flowstation.
Some 17 youths were injured in ensuing face-off with the soldiers.
For the ChevronTexaco, it was another major blow to its attempt at bringing
back on stream some of the flowstations in the swamp of the Niger Delta, which
were shut since last year.
The latest incident raised Chevron's total oil production losses due to shut
down, to about 132,000 bpd.
Nigeria's total oil production losses will also now amount to 1.268 million bpd
per week, due to commuity crises.
According to the Department of Petroleum Resources (DPR), Shell was as at last
month, losing some 18,837 barrels per week, due to the closure of its four
flowstations earlier. Chevron was losing 999,600 barrels after its six
flowstations remained shut and Elf, 49,749 barrels from the closure of four of
its flowstations.
Cut in Nigeria's oil production could negatively impact on the international
market, still struggling to maintain stability after weeks of spiraling prices
following fear over supply problems.
In October, the Federal Government had bowed to pressures to negotiate with two
militant groups threatening violence against oil production rigs in River
State. The groups are the Niger Delta Volunteer Force led by Alhaji Mujahid
Asari Dokubo and that of his rival, Ateke Tom.

   

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