Nigeria's oil production dips further, as militants continue onslaught
By Sulaimon Salau with Agency reports
PRODUCTIONS at Nigeria's oil facilities may have continued to drop drastically, owing to increasing tension in the oil-producing region, Niger Delta.
Leaving no respite for smooth operation, the act of militancy in the region has halted several production activities, which had resulted in shut-in of about 25 per cent of the nation's oil production capacity of 2.6 million barrels per day (bpd).
The production, which stood at 1.88 million barrels per day as at mid January, may have dipped further with current shut-in from major oil facilities in the Niger Delta. The latest, being the force majeure declared by Shell at its Bonny oil terminal, leaving its productions at 90,000 bpd, from the normal level of 500,000bpd.
The Guardian gathered that before the Shell's pronouncement, shut-ins due to militant attack stood at 40,000bpd.
Besides the militant induced shut-in, Nigeria is compelled to comply with the automatic cut by the members of the Organisation of Petroleum Exporting Countries (OPEC) to support global oil prices. It had therefore trimmed about 160,000 bpd, being its share of the 2.2 million bpd OPEC output cut.
Notwithstanding this drastic drop, the militants recently threatened further showdown on the oil multinationals, if the foreigners were not removed from the region.
Shell had last week announced that unrest in the Niger Delta might affect its ability to meet some oil export obligations from its Bonny terminal for the rest of this month and some of next.
Meanwhile, the previous force majeure covering Liquefied Natural Gas (LNG) shipments from Bonny is still in force.
"It's currently at 90,000 barrels per day. We hope to get it back to at least 200,000 in the coming days," an NNPC official was quoted as saying. Production of Bonny Light, a light crude oil popular with United States and European refiners, has fallen sharply in the last few years since the main militant group, The Movement for the Emancipation of the Niger Delta (MEND), began a campaign of violence against the oil industry.
The NNPC official said the Bonny terminal was producing more than 500,000 bpd before the attacks started in early 2006.
Meanwhile, MEND had equally threatened to attack facilities operated by Italian companies in Nigeria.
MEND stated this in an e-mailed statement on Friday, saying that it would not reverse decision to attack Italian interests in Nigeria, especially Italian oil firm Agip, which is one of the major oil companies operating in Niger Delta region.
"It is rather unfortunate that instead of coming to Nigeria with an olive branch, the Italian minister chose to come with a Greek gift that will now lead to a bigger oil war," said the statement.
The group blamed Italian government's decision to have sold two attack boats to the Nigerian military. Italian Foreign Minister, Franco Frattini, made the offer during his visit to Nigeria last week.
"MEND therefore wishes to put Agip on notice that its government like that of Britain has by this action put its workers and Italian companies in the region at serious risk," it said.
As the quest to halt the lingering crisis in the region improves, the Minister of Niger Delta, Obong Ufot Ekaette, recently approached the oil multinationals and other stakeholders in Lagos to chat the way forward.
Ekaette, at the forum assured of his commitment to the objective, urging all the stakeholders to collaborate with the ministry towards repositioning the communities for the better.
"We want to embark on projects and programmes that will make the people to feel the impact of the oil production and to change their current negative disposition towards oil operation. We implore you to be part of the effort to make the required difference in the lives of the people of the oil communities," he said.
The minister, having rolled out the 11-point allegation of the host communities on the oil multinationals said, "we have come to a point in the history of the Niger Delta where we have to adopt drastic measures dictated by the circumstances of the time, to provide succour for the people of the oil communities. Unlike in the past when communities were contended with minor schemes and freebies, oil companies should now begin to provide basic infrastructure that can guarantee long term benefits for the people of the region.
"We wish to advise that you consider the construction of roads to link up the oil communities as part of your community relations practice and sustainable development programme. It is also our firm belief that if oil firms employ people from their host communities to do most of the jobs, which are sometimes given to non-indigenes, the level of restiveness in those areas would be drastically reduced," he said.
