Africa News
Shell halts production at main oil field after militant attack
Jun 19, 2008, 12:14 GMT
Abuja - Royal Dutch Shell said Thursday it has shut down production at its main offshore oil field in Nigeria after a militant attack.
'I can confirm that the Bonga field in western Niger Delta was attacked early today,' Shell spokesman Precious Okolobo said. 'Production at the facility has been shut off, but we cannot confirm further details at the moment.'
Militant attacks have cut production in Nigeria by almost a quarter since the beginning of the year, contributing to sky- rocketing global oil prices.
The closing of the Bonga field, which can produce 225,000 barrels per day, cuts the West African nation's capacity by 10 per cent.
Army Lieutenant-Colonel Sagir Musa, spokesman of the troops responsible for providing security to oil-production facilities, confirmed the attack but said the situation had been brought under control.
Militants in the impoverished Niger Delta regularly attack oil production facilities and abduct oil workers as they press for a bigger say in oil exploitation in the area.
Nigeria is second only to Angola in oil production in Africa. In spite of its oil wealth, the majority of Nigerians live below one dollar a day.
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Mutaru Mumuni MuqtharJun 19th, 2008 - 17:22:36
It is highly unfortunate that oil laden countries like Nigeria have not been able to discover a secured way of managing the resource. Whatever the case may be, it is very evident that oil will continue to play a very significant role in Africa's development. It therefore requires that African governments find an appropriate way of providing security for producers and distributing proceeds accruing from oil equitably.
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