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Shell resumes operations at stations in Nigeria
February 14, 2005

Lagos - The energy giant Shell is gradually resuming production at its two oil-pumping stations and a gas plant that were shut down last month because of community unrest in southern Nigeria, a spokesperson said on Monday.

Angry villagers from Owaza in Abia State forced Shell to shut down its Imo River 1 and 3 flowstations with a combined daily output of 35,000 barrels of crude oil on January 24.

An adjoining gas plant accounting for 10 million standard cubic feet (300,000 cubic metres) per day was also closed down.

A Shell spokesman told AFP the company restarted the facilities at the weekend after carrying out inspections on them.

"We are back in operation. As at this morning, we were producing 12,000 barrels of oil per day and we hope to attain the peak level of 35,000 barrels by the end of the week," he said.


He said the supply of gas has also resumed at the plant following a truce with the villagers.

The villagers had forced Shell to shut down its operation to vent their anger over the government's choice of a representative for the area on the board of the state-run Niger Delta Development Commission.

The agency was set up to develop the impoverished region, home to Nigeria's multi-billion-dollar oil and gas industry.

Shell is Nigeria's biggest operator accounting for a third of the country's output of 2.5 million barrels a day, and like other operators, is regularly the target of community protests and hostage-takings.

Nigeria, Africa's largest oil producer and the world's sixth biggest oil exporter, derives more than 95 percent of its foreign exchange earnings from oil. - Sapa-AFP
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