allAfrica.com: Shell Restores 65,000 Bpd Crude Production: “Shell Petroleum Development Company (SPDC) announced yesterday that it has been able to restart three of its oil flowstations shut down in the Niger Delta…” (ShellNews.net) Posted 14 Jan 05
This Day (Lagos)
Shell Petroleum Development Company (SPDC) announced yesterday that it has been able to restart three of its oil flowstations shut down in the Niger Delta late last year due to community crisis. The facilities are now producing some 65,000 barrels per day (bpd).
Militant youths had shut down Shell's Santa Barbara, Belema, Ekulama 1 and 2, Egbema and Odeama flowstations, to protest alleged neglect by the oil company.
The closure saw Shell losing about 130,000 bpd of crude production. The company subsequently declared force majeure, meaning it could not honour its obligation of oil lifting contracts with buyers.
Shell said yesterday that Santa Barbara, Belema and Ekulama 2 flowstations had been restarted.
"Engineering work is progressing well at Ekulama 1, while Memorandum of Understanding (MoU) negotiations with the community are ongoing," the company said in the statement signed by its Corporate External Relations Manager, Mr. Don Boham.
Repairs he said were also on going on 34 leaking points in the Egbema oil production facility while Shell was still in negotiation with the Odeama community to enable it effect repairs of the faulty generator at the flowstation.
"Normalcy is gradually returning, and we are steadily bringing more production on stream," Boham said.
The Shell flowstations were shut along with ChevronTexaco facility, pushing total crude oil loses to some 160,000 bpd between December and now.
As at last year ending, Nigeria's total oil production loses amounted to 1.268 million bpd per week, due to commuity crises according to the Department of Petroleum Resources (DPR).
A cut in Nigeria's oil production could negatively impact the international market which is still struggling to maintain stability after weeks of spiraling prices following fear over supplies.
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