allAfrica.com: Warri Crisis: We're Losing $20m Monthly - Shell

Vanguard (Lagos)

May 5, 2004

Posted to the web May 5, 2004

Warri

SHELL Producing Development Company said yesterday that it was currently losing over $20 million (dollars) monthly to the activities of militant youths and restiveness in the Warri crisis.

General Manager of production of SPDC, Mr. Martin Wink who made the disclosure shortly after a closed door meeting with Defence Minister, Dr. Rabia Musa Kwankwoso and Brigadier -General Elias Zamani, Commander J.TF, stated that as a result of the Warri crisis, three of Shell's flow stations in the reverine areas of Opuama, Saghara and Oturama have been shut down and are present not operational.

Explaining that the flow stations produce 25,000 barrels, 6000 barrels and 29,000 barrels respectively, the general manager stated that the flow stations could not be re-opened for now because of the tense security situation in the reverine areas of the Niger - Delta.

On reports that SHELL was planning to suspend operations and new projects development in many of its production sites in the Niger-Delta, Mr. Wink said it was untrue but added that those areas where it had planned to reactivate and re-energize, will remain close for now until the security situation improves.

Asked why he came to see the Minister of Defence, the Shell official said it had to do with security fears in the Niger-Delta, adding that the recent incident of killing of oil workers in the Benin River in Warri was a source of concern to oil producing companies in the area.

"But with the assurance of the Honourable Minister of Defence that Mr. president was personally interested in the security of both oil companies and workers as well as people living in the area and the assurances of the security agencies themselves, I think we can safely say our operations will continue unhindered," the G.M. said.

He added that the interest and response of government at all levels since the Benin River killings culminating in the visit of top government officials from the Federal and states, has sent a signal to the oil companies that government was serious about protecting their huge investments and the workers in the area.

Mr. Martin Wink also appealed to the leaders of oil producing communities in the reverine areas of the Niger- Delta to call their youths to order saying, you cannot create jobs in an atmosphere of crisis, when production facilities are shut down or cannot be reopened.

"As a result, there is serious shortage of revenue to both the Federal Government and the company and activities geared towards assisting these communities e.g. provision of development projects are suspended" he said.