THE WALL STREET JOURNAL: Shell Hopes Nigerian Conflict Will Be Resolved By Weekend: “Shell Petroleum Development Company of Nigeria, a unit of Royal Dutch Group (RD,SC), said Friday it was hopeful the dispute between it and one of its host communities that led to the closure of its flow stations would be resolved this week” (ShellNews.net) Posted 11 Dec 04

DOW JONES NEWSWIRES

LAGOS -- Shell Petroleum Development Company of Nigeria, a unit of Royal Dutch Group (RD,SC), said Friday it was hopeful the dispute between it and one of its host communities that led to the closure of its flow stations would be resolved this week.

SPDC has completed the withdrawal of its workers trapped in the two flow stations invaded by residents of the Kula community in Rivers State, in the Niger Delta, a spokesman for the company said.

A meeting aimed at resolving the dispute is being held Friday and will be attended by officials of the company, the Rivers State government, and representatives of the Kula community, the spokesman told Dow Jones Newswires.

"We are hopeful that before the week is over, the conflict would have been resolved," he said.

A meeting scheduled to be held between the two parties Wednesday didn't go ahead as the community representatives were said to be absent.

Protesters from the community invaded Shell's Ekulama 1 and 2 flow stations last Sunday, forcing the company to shut down the production of 70,000 barrels a day of crude.

The community complained of being neglected by the oil companies, after many years of oil exploration and production in the area.

Subsequent activities by the community forced Shell to shut down another flow station that produces 30,000 b/d of crude.

They also invaded a flow station operated by ChevronTexaco Corp. (CVX), shutting in an additional 20,000 b/d of crude oil production.

All four flow stations remained shut Friday.

The Shell spokesman said the company completed the withdrawal of its staff from the affected facilities Thursday. Shell said 75 workers were trapped in their rooms at the facilities.

He said Shell left some supervisors behind but gave no further details.

-By Vincent Nwanma; Dow Jones Newswires; +234-1-585-0849; vinwanma@beta.linkserve.com