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Apr-21-2008Shell Nigeria's Bonny Crude Output Cut After Attack (Update2)(topic overview)
CONTENTS:
- The Movement for the Emancipation of the Niger Delta, or MEND, has asked for mediation by former U.S. President Jimmy Carter and urged President George Bush and actor George Clooney for their involvement. (More...)
- Shell says a small amount of its oil production in Nigeria has been shut down due to an apparent attack by rebels on a pipeline in the Niger Delta. (More...)
- LONDON -(Dow Jones)- Shell Petroleum Development Co. of Nigeria has declared force majeure on crude oil liftings from its Bonny Light Terminal for April and May, a spokesman for the company said Monday following an attack on a key pipeline which feeds in to the terminal. (More...)
- Since early 2006, attacks by militant groups on Nigeria's oil infrastructure have slashed the country's production of petroleum by nearly a quarter. (More...)
- Communities in the Niger Delta, a maze of creeks and rivers feeding into one of the world's biggest remaining areas of mangroves, are among Nigeria's poorest, according to a 2004 report funded by Shell. (More...)
- Militants are also blaming the military for the destruction of some 20 houses in the Opuama community of Delta State, the alleged consequence of a failed attack on a Chevron oil facility in the area. (More...)
- 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%. (More...)
- MEND emerged in early 2006 as the leading group calling for a greater share of Nigeria's oil revenue for the producer region. (More...)
- Addressing U.S. President George W. Bush, the rebel group said the attacks were "our way of saying 'welcome"' to a U.S. warship, the high-speed vessel Swift, which has been visiting the Gulf of Guinea to conduct training with the Nigerian navy. (More...)
- Most of the country's reserves are found along the Niger River Delta, in southern Nigeria. (More...)
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The Movement for the Emancipation of the Niger Delta, or MEND, has asked for mediation by former U.S. President Jimmy Carter and urged President George Bush and actor George Clooney for their involvement. The militant group said in a statement that its fighters have blown up two pipelines operated by Chevron Corp. and a Royal Dutch Shell PLC joint venture in southern Rivers state. The statement from MEND said they are stepping up their activities following the arrest of their leader Henry Okah, who is on trial for terrorism and treason. Royal Dutch Shell said on Monday that its crude oil production would fall short by about 169,000 barrels per day following sabotage on a pipeline in southern Nigeria last week by militants. [1] LAGOS, Nigeria - The main militant group in Nigeria's restive southern region said Friday it had sabotaged a major oil pipeline and threatened further attacks in Africa's biggest crude producer. The Movement for the Emancipation of the Niger Delta said its fighters hit the pipeline operated by a Royal Dutch Shell PLC joint venture in southern Rivers state overnight.[2]
LAGOS (Reuters) - A rebel group from Nigeria's oil producing Niger Delta said it attacked two major oil pipelines there on Monday in what it called a message to the United States to stop supporting "injustice" in the troubled region. In an email sent to Reuters, a faction of the Movement for the Emancipation of the Niger Delta (MEND) said its commandos had carried out attacks against the pipelines located at Isaka River and Abonnema River in Rivers State. It gave no more details of the raids, which followed an attack on Thursday claimed by MEND militants against a pipeline operated by Royal Dutch Shell, also in Rivers State. MEND said the pipelines targeted on Monday could belong to Shell and U.S. major Chevron Corp, but there was no immediate confirmation of this from the companies mentioned, or from any independent sources.[3] LAGOS (Reuters) - Rebels in Nigeria said on Friday they had attacked a major oil pipeline in the Niger Delta operated by Royal Dutch Shell, forcing the company to shut in what it described as a small amount of production. The Movement for the Emancipation of the Niger Delta (MEND) said it attacked the pipeline, which crosses from the Cawthorne Channel to the Bonny terminal at Adamakiri in Rivers state, late on Thursday and planned more such attacks.[4]
The Movement for the Emancipation of the Niger Delta (MEND) has claimed that its fighters on Thursday destroyed a major pipeline belonging to Anglo-Dutch oil giant, Shell Petroleum Development Company (SPDC) at Adamakiri in Rivers State. According to an online statement posted by Gbomo Jomo from the official website of MEND, the pipeline they destroyed carries petroleum products from Cawthorn channel to Bonny. They also vowed to step up attacks on oil facilities in the Niger Delta, adding that more destruction of major oil facilities would follow that of the Adamakiri attack.[5] IN successive actions, the Movement for the Emancipation of the Niger Delta claimed it has attacked facilities of two major multinational companies in the Niger Delta. An online statement by the militant group claimed that its commandos on Thursday, April 17, 2008 at 2230 Hours, sabotaged a major Shell Petroleum Company pipeline at Adamakiri in Rivers state. It was learnt that the pipeline crosses from the Cawthorn channel to Bonny, a community rich with oil and gas.[6]
Oil prices had already risen $1.83 on Friday, following an attack on a pipeline owned by Royal Dutch Shell (nyse: RDSA - news - people ) by the main militant group in southern Nigeria, the Movement for the Emancipation of the Niger Delta.[7] The unrest heightened fears about supply disruption andhelped push world oil prices to new record highs, with U.S.light crude hitting a record $117.40 a barrel and London Brentalso striking an all-time peak at $114.65. In an email sent to Reuters, a faction of the Movement forthe Emancipation of the Niger Delta (MEND) said its commandoshad carried out the attacks on Monday against pipelines locatedat Isaka River and Abonnema River in Rivers State.[8]
Shells share of the output is about 30 percent. The Movement for the Emancipation of the Niger Delta, or MEND, took credit for that attack, and added Monday that its fighters also hit two more pipelines it believes are operated by Chevron Corp. and the Royal Dutch Shell PLC joint venture in southern Rivers state.[9] The attack on the Royal Dutch Shell PLC pipeline by the Movement for the Emancipation of the Niger Delta was another violent attack on oil industry targets that the movement promises further to come in Africa's largest producer. Shell confirmed the leak in the pipeline caused by explosives, and they reported that they have already isolated the line for repair and a small production capacity had been shut.[10] LAGOS, April 18 (Reuters) - Royal Dutch Shell (RDSa.L: Quote, Profile, Research ) said on Friday a small amount of its oil production in Nigeria had been shut in due to an apparent attack by rebels on a pipeline feeding into the Bonny terminal in the Niger Delta.[11] Western-based oil company Royal Dutch Shell says it hopes to quickly repair and resume production in an oil pipeline in Nigeria's Niger Delta region that was attacked by militants Friday.[12] LAGOS, April 21 (Reuters) - Royal Dutch Shell (RDSa.L: Quote, Profile, Research ) said two of its oil pipelines were attacked in Nigeria's Niger Delta on Monday and the company was assessing the damage.[13]
The Movement for the Emancipation of the Niger Delta - the main rebel organisation in the south of Nigeria - said it had sabotaged a major oil pipeline operated by Royal Dutch Shell.[14]
"On Monday, April 21, 2008 at 0100 and 0310 Hrs commandos from the Movement for the Emancipation of the Niger Delta (MEND) in continuation of Operation Cyclone ( the crippling of the Nigerian oil export industry) attacked two major oil pipelines in Rivers state of Nigeria located at Isaka River and Abonnema River (close to Idama flow station).[15] "On Thursday, April 17, 2008 at 2230 hours, commandos from the Movement for the Emancipation of the Niger Delta (MEND), sabotaged a major Shell Petroleum Company pipeline at Adamakiri in Rivers State of Nigeria. That pipeline crosses from the Cawthorn channel to Bonny," the group said in an e-mail signed by Jomo Gbomo and sent to journalists.[16] 'On Thursday April 17, 2008 at 2230 hours, commandos from MEND sabotaged a major Shell Petroleum Company pipeline at Adamakiri in Rivers State. That pipeline crosses from the Cawthorn channel to Bonny. We have decided to step up our attacks ahead of schedule and there will be many more to follow,' they vowed. Meanwhile SPDC's managing director, Mr. Basil Omiyi yesterday briefed President Umar Yar'Adua on the damaged pipeline and efforts to repair it this weekend. The President, who has just been discharged from a German hospital where he had gone for a medical check, said he was disturbed by the fact that some elements in the Niger Delta were bent on sabotaging government's efforts at engendering peace in the area. Yar'Adua promised not to shirk the constitutional responsibilty for law and order, as well as safety of lives and property in the Niger Delta and other parts of the country.realised that it is better to destroy oil facilities in their territory since they do not benefit them in the first place.[5]
Lieutenant Colonel Sagir Musa, spokesman for the Joint Task Force, denied MEND's claim. "We have our men stationed in the areas they claimed to have attacked, we have not received reports of any attack today,'' he said. Levi Ajuonuma, a spokesman for the Nigerian National Petroleum Corp., which owns a majority stake in joint ventures with oil companies including Shell and Chevron, said he was unaware of today's attacks. He condemned MEND's increased violence in the Niger Delta. "These people should realize that, at the end of the day, this will not solve anything,'' Ajuonuma said in an interview from Abuja. "They're just adding to the increase in the price of oil, this is not the way to go. They should return to dialogue.'' Gbomo said MEND was open to meeting with former U.S. President Jimmy Carter, saying Carter "is not in denial'' about the role of freedom fighters, as witnessed by his recent meetings with the group Hamas.[17] In a letter written by a group called Movement for the Emancipation of the Niger Delta, or MEND, the group said they attacked two pipelines they believed are owned by Chevron Corp. and Shell oil. Representatives from both companies said were not immediately available for comment.[18]
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. The Movement for the Emancipation of the Niger Delta, the militant group that lays claim to many of the attacks on oil infrastructure in Nigeria, said Friday it will step up its attacks on oil companies in the region, and said earlier Monday it had made two further attacks on oil facilities in the Delta.[19] Nigeria's main rebel group, Movement for the Emancipation of Niger Delta, yesterday said it had stepped up attacks against the country's oil infrastructure by supplying explosives to communities to use to blow up oil pipelines.[16]
Oil prices also jumped in the wake of an attack on a shell pipeline by the Movement for the Emancipation of the Niger Delta.[20]
LONDON - Oil continued its meteoric rise Monday, with the price of black gold spiking above $117 a barrel in Asian and European trading, marking a new record high. The rise followed an attack on a Nigerian oil pipeline owned by Royal Dutch Shell on Friday and comments from an official of the Organization for Petroleum Exporting Countries (OPEC) over the weekend that suggested the cartel did not need to raise production because this would not affect oil prices.[7] LAGOS (Reuters) - Nigerian rebels attacked two Royal DutchShell oil pipelines in the Niger Delta on Monday after a raidlast week hit production, in what they called an act ofdefiance against major consumer the United States. Shell said it had been forced to shut 169,000 barrels perday of Bonny Light crude oil production after the first attacklast Thursday and was assessing the damage from Monday'sstrikes on its Soku-Buguma and Buguma-Alakri pipelines. It said it had declared force majeure on Bonny Lightexports for the rest of April and May, although it said someoil would still be exported while the measure was in place.Force majeure means it cannot guarantee to meet its contractcommitments.[8] LONDON, April 21 (Reuters) - Royal Dutch Shell (RDSa.L: Quote, Profile, Research ) said on Monday it was forced to shut 169,000 barrels of Bonny Light crude oil production in Nigeria for repair work following sabotage to a pipeline last week.[21] April 21 (Bloomberg) -- Royal Dutch Shell Plc said a militant attack on a pipeline has cut as much as 169,000 barrels a day of Nigeria's Bonny Light crude production as rebels claimed responsibility for two more strikes today.[17] LAGOS, Nigeria (AP) - An oil company official in Nigeria says attacks by militants mean the Royal Dutch Shell joint venture will fall short by about 169,000 barrels of crude per day.[22] LAGOS, Nigeria (AP) A Royal Dutch Shell joint venture said today it's cutting oil output by 169,000 barrel per day in Nigeria as militants said they attacked two pipelines in the restive southern region.[23] Sabotage on a pipeline in southern Nigeria last week will mean a drop of about 169,000 barrels per day for April and May shipments, Royal Dutch Shell PLC joint venture spokesman Precious Okolobo said.[9]
A Shell spokesman, Precious Okolobo, said sabotage last week on a pipeline in southern Nigeria will affect April and May shipments totaling about 169,000 barrels per day, of which 30 percent is Shell's share. The militants say they are stepping up their activities after the arrest of one of their leaders, Henry Okah, who is on trial for terrorism and treason.[23]
LONDON -(Dow Jones)- Shell Petroleum Development Co. of Nigeria has shut-in around 169,000 barrels a day of crude production from its Bonny Light oil fields following an attack on a key pipeline which feeds-in to its export terminal, a spokesman for the company said Monday. SPDC has declared a force majeure on its April, May oil delivery contracts from its 400,000 barrel a day Bonny fields effective Apr. 22, which indemnifies it from litigation if it fails to meet contractual obligations to buyers.[19] The April 17 attack has halted about 169,000 barrels a day of crude production, Shell spokesman Rainer Winzenried said in an e- mailed statement today. That's about 9.5 percent of the crude oil scheduled to be exported from Nigeria this month, according to Bloomberg calculations based on loading programs. Nigeria's oil industry has been targeted by militants over the past two years, cutting production of the country's light, sweet oil, valued by U.S. refiners because of its gasoline yield.[17]
The militant group's bomb attacks since early 2006 have targeted oil pipelines and other infrastructure, cutting nearly one quarter of Nigeria's normal petroleum output and helping push oil prices to historic highs on international markets. The militants say they are fighting to force the federal government to send more oil industry revenue to their areas, which remain desperately poor despite decades of oil production. The group also says it wants the release of one of its leaders, Henry Okah, an alleged illegal arms dealer.[2] The militant group emerged in early 2006, launching bombing attacks on Nigerias oil infrastructure that cut about one-quarter of the usual oil output in Africas biggest crude producer. That has helped send oil prices to all-time highs. The militants want their leaders released from prison and more oil revenue for areas that remain deeply poor despite the natural bounty.[9]
The vast network of oil pipelines crisscross the swamps and creeks in the Niger Delta and are easily sabotaged. The militants havent recently shown the sophisticated, military-style raids on staffed oil infrastructure that made them the most potent-ever militant group in southern Nigeria.[9] Crime and militancy are closely interwoven in the southern Niger Delta where the crude is pumped. Many of the various armed groups in the region have had links to local politicians, who helped arm and direct the gunmen in their efforts to rig elections. Both militants and government officials are suspected of heavy involvement in the theft and resale of crude oil, which oil industry officials brings revenues that run into the millions of dollars per day.[24] Udengs Eradiri of the Ijaw Youth Council, a leading pressure group in the delta, says the military is being used to settle political scores in the delta's creeks. "The Joint Task Force that has been deployed in the Niger Delta to quell the situation in the region; what government officials or politicians do these days is that when you are agitating for your rights, they will send them and say you are a militant.[12]
Niger Delta militants often make appeals to theinternational community but Nigeria has treated the unrest inthe delta as an internal matter and so far there have been nointernational mediators involved in negotiations. MEND is one of several armed groups who say they arefighting to redress injustice in the impoverished region, wherefive decades of oil extraction have polluted the land andwater, and enriched corrupt politicians. Crime and militancy are intertwined in the Delta andsuch groups make big profits from kidnappings for ransom, froma lucrative trade in stolen oil or from providingthugs-for-hire to politicians who use them to steal elections.[8] There have been no international mediators involved in the Nigerian government's attempts to negotiate with splintered rebel forces in the Niger Delta, where the bulk of Nigeria's oil is produced. MEND is one of several armed groups who say they are fighting to redress injustice in the impoverished region, where five decades of oil extraction have polluted the land and water, and enriched corrupt politicians. Crime and militancy are intertwined in the delta and such groups make big profits from kidnappings for ransom, from a lucrative trade in stolen oil or from providing thugs-for-hire to politicians who use them to steal elections.[3]
Movement for the Emancipation of the Niger Delta, (MEND) has warned oil companies working along the coastal region of Nigeria to be ready for war, just as it said the military was not in a position to protect them. MEND said the oil companies were in for a raw deal, stressing that it had decided to step up its attack on oil installations ahead of schedule.[16] Okonedo said Thursday's attack by the Movement for the Emancipation of the Niger Delta (MEND) on the pipeline feeding the Bonny exports terminal had also caused a minor crude spill. He said the company was mobilising engineers Saturday to contain the spill.[25]
"We have decided to step up our attacks ahead of schedule and there will be many more to follow," the group said in a statement on Friday. Shell -- the company which has been worst hit by Niger Delta violence -- is producing around 400,000 barrels per day below its full capacity from Nigeria because of attacks and kidnappings by MEND since 2006.[4] London's Brent North Sea crude for June delivery hit a record 114.86 dollars. There was no immediate confirmation from the companies named of the raids, which followed similar sabotage of a Shell pipeline on Thursday evening, when the group promised "many more" such attacks to follow. Shell, Nigeria's largest oil operator accounting for around half of the country's 2.1 million barrels per day output, has seen a wave of attacks on its facilities in recent months.[26] The pipeline was connected to the Bonny exports terminal -- the largest in the country with a storage capacity of around seven million barrels of crude oil. Shell, Nigeria's largest oil operator accounting for around half of the country's 2.1 million barrels per day output, has seen a wave of attacks on its facilities in recent months.[25]
Shell could not immediately comment on MEND's announcement. "MEND will offer materials such as explosives to communities that have now realized that it is better to destroy oil facilities in their territory since they do not benefit from them in the first place," it said in a statement. "We have started enlisting men to join the fight that is inevitable and can assure the oil companies that they are in for a raw deal as the military is not in the position to protect them," it said. It said it had sabotaged a major Shell-operated pipeline at Adamakiri in Rivers state, which ties into the Bonny crude oil export terminal.[27] The Movement for the Emancipation of the Niger Delta, or MEND, said in a statement that fighters hit two pipelines: one run by the Shell venture, and another by Chevron Corp. in southern Rivers state.[23] The Movement for the Emancipation of the Niger Delta also said it provided the logistics and support to the group that carried out the warning attack on a Chevron oil facility in Delta state.[27] The rebel group''''' the Movement for the Emancipation of the Niger Delta''''' has been attacking oil installations since early 2006, and vowed to stage more attacks.[28]
The Movement for the Emancipation of the Niger Delta, the main militant group that claimed responsibility for the blast, says it plans more attacks.[12] The news follows a claim earlier Friday from militant group The Movement for the Emancipation of the Niger Delta that it had sabotaged a pipeline at Adamakiri, located in the Cawthorne Channel area.[29]
Shell says a small amount of its oil production in Nigeria has been shut down due to an apparent attack by rebels on a pipeline in the Niger Delta. [30] LAGOS (AFP) — Anglo-Dutch oil group Shell said Saturday it had slightly reduced oil production following a militant attack on a major supply pipeline in southern Nigeria.[25] The most prominent militant group in Nigeria's southern oil-producing region said Monday it had sabotaged two pipelines overnight, possibly belonging to Anglo-Dutch oil company Shell and U.S. Chevron.[26]
When contacted, SPDC's spokesman, Mr. Tony Okenedo said the company had dispatched a helicopter to overfly the area to determine what actually happened but the overfly was being hampered by poor visibility due to the rains that enveloped the Port Harcourt area. The militant group also admitted that they facilitated the attack on Chevron oil facility in Delta State on Wednesday by providing the logistics for it, saying that it was just a warning attack.[5] The group also said it provided the logistics and material support to the group that carried out the warning attack on the Chevron Oil Facility in Delta state on Wednesday, April 16, 2008. A Shell spokesman however told Saturday Tribune they were yet to ascertain the level of destruction, adding that they dispatched a helicopter to overfly the area but could not get details due to bad weather.[6] "MEND can confirm that it provided the logistic and material support to the group that carried out the warning attack on the Chevron Oil Facility in Delta State on Wednesday, April 16, 2008. "We salute the brave fighters who participated in this membership training session and were embarrassed that the Nigerian soldiers fled from even advantaged positions.[16]
Nigeria is the fifth largest supplier of oil to the United States, which has cultivated good relations with the government of President Umaru Yar'Adua. "The ripple effect of this attack will touch your economy and people one way or the other and (we) hope we now have your attention," MEND said. It complained that Bush had not responded to past requests from it to mediate talks with the Nigerian government. The U.S. government criticized the disputed Nigerian elections that brought Yar'Adua to power last year, but has since engaged with him.[3] The attacks have yet to be independently confirmed, but MEND rarely makes false claims. The group said the second attack on oil pipelines in four days, after Friday's attack, was also aimed at protesting the continued detention and secret trial of its leader, Henry Okah; and the arrival in Nigeria of a U.S. Warship, said to be `transiting the Gulf of Guinea'.[15] LAGOS, Nigeria (CNN) -- A group of Nigerian rebels who wrote a letter to U.S. President George W. Bush, stating that they attacked two oil pipelines Monday, have asked for former President Jimmy Carter and actor George Clooney to help solve issues in the oil-rich Niger-delta.[18] LAGOS, Nigeria (AP) -- Militants said they blew up two more oil pipelines Monday in southern Nigeria and called for former President Jimmy Carter and actor George Clooney to help mediate an end to the crisis.[24]
LONDON -(Dow Jones)- Shell Petroleum Development Co. of Nigeria has declared force majeure on crude oil liftings from its Bonny Light Terminal for April and May, a spokesman for the company said Monday following an attack on a key pipeline which feeds in to the terminal. [31] LONDON -(Dow Jones)- The Shell Nigeria Joint Venture has shut in a small amount of production after it found a leak on a pipeline which feeds in to its Bonny Light crude export terminal, a spokesman for the joint venture said Friday.[29] Shell said Saturday it had slightly reduced oil production following Thursday's sabotage with explosives on a pipeline feeding the Bonny exports terminal, which had also caused a minor crude spill.[26]
Attacks since 2006 have cut the country's exports by nearly 1/3, most of which come to America. 'To make matters worse, OPEC in a conference this past weekend stated they are unlikely to increase oil production due to an unsure future over oil demand.[20]
The unrest has contributed to a rise in world oil prices, although in recent months, the group has not carried out any attacks which have had a significant impact on oil production.[4] Oil prices shot to a record 117.81 dollars on the New York contract as traders seized on the unrest in key producer Nigeria, the weak U.S. currency and OPEC's refusal to increase production.[26] Comments from an OPEC official on Sunday are likely to keep oil prices buoyant in the coming week. OPEC's secretary-general, Abdullah el al-Badri, said that the cartel would raise production if price pressures on oil were caused by a shortage of supply but that, for the time being, he didn't see supply as the reason behind today's high prices. "Oil prices, there is a common understanding that has nothing to do with supply and demand," he said on the sidelines of an energy conference in Rome.[7] Production from OPEC aside, concerns about supply and demand in the United States and the weak American dollar have also served to support oil prices in recent weeks. Crude prices rose nearly 6% last week. --The Associated Press and Thomson Financial contributed to this article.[7]
Oil prices jumped to a new high of $117.40 a barrel in the wake of a rocket attack on a Japanese oil tanker and OPEC's refusal to increase crude supply.[20] Oil prices reached another''new high on Friday as crude''hit $117 U.S. a barrel. The price of oil for May touched its new peak in electronic after-hours trading on the New York Mercantile Exchange.[28]
The price of crude oil yesterday hit an all-time high of $116.10 a barrel on the New York market after it emerged that supplies from Nigeria, one of the world's biggest crude oil producers, could be cut further.[14] Estimates vary but, at 500,000 barrels a day, the amount of oil capacity unavailable due to sabotage and security concerns is a fifth below Nigeria's potential, based on the International Energy Agency's estimate of effective production capacity of 2.47 million barrels a day. NNPC officials estimate its capacity is nearer 3 million barrels a day. Prices for physical cargoes of key benchmark grade Nigerian oil on the spot market are already trading near record levels, according to traders of West African crude based in London, buoyed by extra demand for crude that can be converted in to sweet middle distillate productions. -By Angela Henshall, Dow Jones Newswires; +44 (0)20 7842 9285; [email protected] (Adam Smallman contributed to this article.)[19] May's contract expires tomorrow and the contract with higher volume of trade today which is the June settlement contract is currently trading around $116.08 opening at the high so far of $116.54 and setting the low at 115.86 per barrel. OPEC secretary-general, Abdullah el al-Badri, was quoted saying in an energy conference in Rome, that prices express further potential to the upside and that the organization is will to increase production capacity if the reason was supply shortages, though he was clear in stressing that it was not the driver behind the bullish momentum saying "Oil prices, there is a common understanding that has nothing to do with supply and demand".[10]
Since early 2006, attacks by militant groups on Nigeria's oil infrastructure have slashed the country's production of petroleum by nearly a quarter. [7] The leak appeared to have been caused by explosives," Caroline Wittgen, spokeswoman for Shell in Nigeria, said. "We have isolated the damaged line and some small quantity of production has been shut in to enable repairs to take place," she said, but declined to give further details on the impact. MEND announced in September it would recommence attacks on oil installations and the abduction of expatriates following the arrest of one of its leaders, Henry Okah, on arms trafficking charges in Angola. His trial began this month.[4]
Since late 2005, MEND militants have carried out numerous attacks on Nigeria's oil sector and abducted dozens of foreign workers, releasing nearly all of them unharmed.[18]
Militant attacks have already cut one quarter of the normal two-point-five million barrels per day oil output in Africa's largest producer of crude. Militants say they are fighting for control of the region's oil wealth, but their fight is intertwined with communal and ethnic rivalries in the delta, where kidnapping for ransom, extortion and oil theft are widespread.[12] Militancy and crime are closely intertwined in the southern Niger Delta, with fighters stealing crude oil for illegal resale or robbing banks one day and fighting government forces the next.[32] Militancy and crime are closely intertwined in the southern Niger Delta, with fighters stealing crude oil for illegal resale or robbing banks one day and fighting government forces the next. This copyrighted material may not be published, broadcast or redistributed in any manner.[2]
"Today's attack was prompted by the continuous injustice in the Niger Delta region of Nigeria where the root issues have not been addressed by the illegal and insincere government of Umaru Yar'Adua and Goodluck Jonathan,'' it added.[15] Pressure groups in Nigeria's Niger Delta warn Friday's attack could ignite another round of violence in the volatile region.[12]
MEND said, in the letter, that the U.S. Warship's arrival would not 'intimidate us'' and that Americans would soon feel the ripple effects of the group's attacks in the Niger Delta. In calling for Mr. Carter's mediation, MEND said he ''is not in denial as the rest of you who brand freedom fighters as terrorists, forgetting their integral role in any sustainable peace process just as he has demonstrated in his meeting with Hamas''.[15] MEND said today's attacks were aimed at protesting continued injustice in the Niger Delta and the detention of MEND leader Henry Okah, who is being tried for treason and next appears in court tomorrow.[17]
Henry Okah, a leader of The Movement for the Emancipation of the Niger Delta, or MEND, is being tried in a secret court for treason.[12] The Movement for the Emancipation of the Niger Delta has promised further attacks on Nigeria's petroleum industry.[7] The Movement for the Emancipation of the Niger Delta claimed responsibility for last week's attacks.[22]
Communities in the Niger Delta, a maze of creeks and rivers feeding into one of the world's biggest remaining areas of mangroves, are among Nigeria's poorest, according to a 2004 report funded by Shell. [17] Niger Delta militants often make appeals to the international community but Nigeria has treated the unrest in the delta as an internal matter and no foreign power has publicly questioned that.[3]
MEND previously wrote to President Bush and U.S. actor George Clooney over the Niger Delta crisis, without getting any response.[15] The militants also called for mediation by former U.S. President Jimmy Carter with the aim of ending the long-running crisis that government-led peace parleys have so far failed to control. The militants have also asked U.S. President George W. Bush and actor George Clooney for their involvement, but said they have received no reply. "MEND expressed its willingness to embrace a genuine and transparent peace program without getting any response. The ripple effect of this attack will touch your economy and people one way or the other and hope we now have your attention," it said in a statement.[9] In an open letter to U.S. President George Bush, which was released to PANA through an e-mail, MEND also sought the mediation of former U.S. President Jimmy Carter in resolving the crisis in the restive oil region.[15] MEND said the U.S. government knew theelection had been fraudulent but had "looked the other way". It said it was still ready to hold peace talks, but wouldnow prefer former U.S. President Jimmy Carter to act asmediator, instead of Bush.[8]
MEND complained that Bush had not responded to pastrequests from it to mediate talks with the Nigerian government. "The ripple effect of this attack will touch your economyand people one way or the other and (we) hope we now have yourattention," the group said. The U.S. government criticised the disputed Nigerianelections that brought Yar'Adua to power last year, but hassince engaged with him.[8] The group on Saturday accused Nigerian soldiers of raiding a community in the delta. It said in an e-mail statement to AFP that the military Joint Task Force policing the region on Thursday "unleashed a cowardly attack on the defenseless community of Opuama in the Warri north local government of Delta." It said the military burned down houses with residents including women and children who were still asleep inside.[25] Shell officials had no immediate information on any attacks today and the Nigerian military battle group that patrols the oil region's waterways said it had no reports of overnight violence.[23]
Nigeria's most high-profile armed group said it had sabotaged a major Shell-operated pipeline in the country's southern oil patch and warned of more attacks.[27] The group promised further action against Nigeria's oil industry, which has been seriously affected by previous attacks.[14]
Continued unrest in Nigeria, and a missile attack today on Japanese oil tanker off the east coast of Yemen, sent oil prices spiking to a record 117.40 a barrel.[23] Nigeria had 36.2 billion barrels of proven oil reserves as of January 2007, according to Oil and Gas Journal, making it Africa's largest producer of crude oil. The United States is Nigeria's main export partner, taking 42% of its crude exports in 2006. The Nigerian government is planning to increase its proven reserves to 40 billion barrels by 2010.[7] "The pipelines may belong to Shell and Chevron," the message added. It described Operation Cyclone as "the crippling of the Nigerian oil export industry."[26] Group say they attacked two pipelines believed owned by Chevron Corp., Shell oil.[18] MEND today said it has since attacked two more pipelines in Nigeria's Rivers State, possibly belonging to Shell and Chevron Corp.[17] Today's attacks in Rivers State were on pipelines located in Isaka River and Abonnema River and took place at 1 a.m. and 3:10 a.m. local time, respectively, according to a statement today by the militants.[17] "We can confirm attacks early today on two pipelines in our Eastern operations," spokesman Precious Okolobo told Reuters, adding the company was checking on the damage to the Soku-Buguma and Buguma-Alakri pipelines in Rivers state.[13]
Militants are also blaming the military for the destruction of some 20 houses in the Opuama community of Delta State, the alleged consequence of a failed attack on a Chevron oil facility in the area. [12] The group also said it provided logistics to the group that attacked a Chevron facility in Delta State on Thursday.[16]
The rebel group said it "will offer materials such as explosives to communities that have now realised that it is better to destroy oil facilities in their territory since they do not benefit them in the first place." It also said it had this week, attacked facilities operated by Chevron Corp. It isn't known if oil production was interrupted.[16]
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%. [19] A rebel group said Friday it had sabotaged a pipeline run by a Royal Dutch Shell PLC joint venture.[28]
MEND emerged in early 2006 as the leading group calling for a greater share of Nigeria's oil revenue for the producer region. [26] MEND, which came to prominence in early 2006, has claimed responsibility for a series of attacks on Nigeria's oil industry and related sectors in the past two years.[25] Since it rose to prominence in early 2006, MEND has launched a string of kidnappings and attacks on oil and gas facilities, which saw 20% of Nigeria's oil output shut in.[27]
The attacks on the oil facilities of Nigeria have cut the OPEC member's output by almost one-quarter.[28] Gilbert da Costa reports the attack has raised concerns of more violence against Nigeria's oil industry.[12]
The bullish wave was strongly initiated on Friday the last trading day last week, after news of an attack on a key pipeline in Nigeria.[10]
Crude oil for May delivery rose to $117.60 a barrel in after-hours electronic trading on the New York Mercantile Exchange, the highest since futures started in 1983.[17] For that we say Crude Contracts for May delivery surge $1.83 setting a new record high closing at $116.69 after setting the high at 116.97 as the move reversed strongly the bearish spike that throughout the session dragged oil to set the intraday low at $112.72 per barrel.[10]
When running at full capacity, the Bonny Light facility can produce around 400,000 barrels of crude oil a day.[29]
Petrol prices are expected to increase further once the latest surge in the crude oil price feeds through to the forecourts in four to six weeks' time. An AA spokesman warned: "It is slow burn misery out there for drivers.[14] Today in the early Asian session the bullish momentum continues to support oil prices as fears of inadequate supply still roam the markets. Comments over the weekend by OPEC officials that the organization was not considering tabled proposals to enhance supply in the market, as they continue to assure that the supply is adequate and the current levels of oil prices are a result of a combination of factors that revolve the dollar weakness and speculative trading.[10] Iranian President Mahmoud Ahmadinejad, was quoted Sunday as saying the price was too low and "oil must discover its real value." Expect oil prices to continue breaking all historical records this summer, as a decrease in price is not in the foreseeable future.[20] A combination of high oil prices and supply shortages across Europe is aggravating the pain."[14]
Petrol prices are expected to rise yet again after the cost of crude oil hit another record high. The news will come as a blow to hard-pressed motorists who have already seen the cost of filling their tanks leap over the past year.[14] World energy prices rebounded to a new record high of 117 dollars a barrel on Friday after MEND claimed responsibility for the attack, promising "many more" similar ones.[25] "Today's attacks. dispel the false impression that peaceand security have been restored in order to gain the confidenceof potential investors in the oil and gas sector," MEND said.[8] The sabotage, billed as part of Operation Cyclone, "dispels the false impression that peace and security have been restored in order to gain the confidence of potential investors in the oil and gas sector,'' MEND spokesman Jomo Gbomo said in the statement.[17]
We have isolated the line preparatory to repairs," Shell spokesman in Lagos Tony Okonedo told AFP. "Small quantities of oil have been shut in to allow for necessary repairs," he added, referring to the production cut, though refusing to disclose the exact amount.[25] Around 169,000 barrels a day of production, in which Shell has a 30% share, has had to be temporarily shut-in as a result of the disruption.[31]
Shell has declared force majeure on Bonny Light exports. "It will become effective as of April 22 and it will remain effective for the rest of April and May," a company spokesman said. He added some Bonny Light barrels should be still exported while the force majeure was in place, but the volume would not be enough to meet all contract obligations.[21] Shell will declare a so-called force majeure on exports of Bonny crude exports in April and May from tomorrow as a result of the April 17 attack, Winzenried said. Force majeure is a legal clause that allows companies to miss contract deliveries because of circumstances beyond their control.[17]
Addressing U.S. President George W. Bush, the rebel group said the attacks were "our way of saying 'welcome"' to a U.S. warship, the high-speed vessel Swift, which has been visiting the Gulf of Guinea to conduct training with the Nigerian navy. [3] The rebel group, which demands greater regional control over the Delta's oil wealth, has been riven by factional rivalries. Some of its leaders have expressed willingness to return to peace talks with President Umaru Yar'Adua's government.[4] Nigeria is the fifth largest supplier of oil to the UnitedStates, which has cultivated good relations with the governmentof President Umaru Yar'Adua.[8]
Most of the country's reserves are found along the Niger River Delta, in southern Nigeria. [7] Okah is on trial in a closed court on treason and terrorism charges, which can carry the death penalty. He was extradited to Nigeria earlier this year after his arrest last year in Angola. The group has continued its campaign of attacks even after the government met earlier demands for the release of other leaders.[2] Chevron spokeswoman Margaret Cooper said the company had "no information about an attack to Chevron pipelines in the region.''[17]
SOURCES
1. RTTNews - Market Sensitive Global News, Broker Ratings, News&Analysis;, Global Markets News.
2. newsobserver.com | Nigerian militants claim sabotage of major oil pipeline
3. Nigeria rebels say attacked oil pipelines - washingtonpost.com
4. News | Africa - Reuters.com
5. THISDAY ONLINE
6. SATURDAY TRIBUNE - News
7. Oil Punches Above $117 - Forbes.com
8. Nigeria rebels attack Shell oil pipelines- elEconomista.
9. Nigerian militants report two attacks on oil pipelines - International Herald Tribune
10. Technical analysis for crude oil - 4/21/2008 - Forex News | IBT FX Center
11. Attack shuts in small amount of Shell Nigeria output | News | Hot Shares | Reuters
12. VOA News - Nigerian Oil Region in Turmoil as Militants Threaten More Attacks
13. Shell says two pipelines attacked in Niger Delta | Industries | Energy | Reuters
14. Petrol prices set to rise as crude oil hits a new record high | the Daily Mail
15. Nigeria: MEND claims more pipeline attacks, seeks Carter's mediation
16. allAfrica.com: Nigeria: Military Cannot Protect You, MEND Threatens Oil Companies (Page 1 of 1)
17. Bloomberg.com: Africa
18. Nigerian rebels seek help from Clooney, Carter - CNN.com
19. Actualit' de la bourse sur Total - FP : interviews, rumeurs de march's, analyses, dossiersEasyBourse
20. Oil Prices Continue to Break All Records
21. UPDATE 1-Shell shuts some Nigeria output, force majeure on Bonny | Industries | Energy | Reuters
22. Nigeria militants claim new attacks; Shell joint venture says production hit
23. Attacks cut Nigeria's oil production - - Breaking News, Political News & National Security News - The Washington Times
24. Nigerian militants seek help from Clooney, Carter - CNN.com
25. AFP: Shell sees'small' oil production cut in Nigeria after attack
26. IC Publications
27. Nigerian Guerillas Attacks Shell Operated Pipeline
28. Oil surge continues, price hits $117 US
29. Actualit' de la bourse sur Total - FP : interviews, rumeurs de march's, analyses, dossiersEasyBourse
30. Press TV - Blast crimps Shell production in Nigeria
31. Actualit' de la bourse sur Total - FP : interviews, rumeurs de march's, analyses, dossiersEasyBourse
32. The Associated Press: Nigerian militants claim sabotage of major oil pipeline
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