This Day, Lagos, 8 January:
Royal Dutch Shell Chief Executive Officer, Jeroen vander Veer has warned that production would fall rapidly if investment in the Nigerian oil fields were discontinued due to the escalating Niger Delta crisis.
He however stated that the company would continue toinvest in Nigeria notwithstanding the current tense dsituation in the oil-rich region provided its employees can work there safely.
"Nigeria is very rich in oil and gas, onshore and offshore, If you look at the long term, i.e. overdecades, these reserves will indeed be produced. Wecan and want to participate in this, but only if our people can work safely there", he said.
In an interview published in Shell's Dutch in-house magazine, the Shell boss who also spoke on the currentrising crude oil prices, saying the developments areslowing down new projects because governments are taking longer to negotiate their slice of revenues.
"It is evident that active government interest is delaying projects. Government negotiations for theirshare of the revenues are lengthier than in the past.
"Van der Veer said even as he refuted the idea that higher oil prices would actually accelerate decision-making, saying "in reality the opposite is true".
The Shell Chief who also cautioned that this would ultimately impact on the speed at which the company's new projects can be taken into production did nothowever specify which Shell projects might be affected.
Civil conflict breaks out in northern Nigeria—an area rife with Islamic militancy and religious violence—and the Nigerian Army is forced to intervene. The situation deteriorates, and international oil companies decide to end operations in the oil-rich Niger River delta, resulting in a loss of 800,000 barrels a day on the world market.
The Organisation of Petroleum Exporting Countries (OPEC) has linked the Niger Delta crisis to rising crude oil prices, despite denials by Nigerian officials.
The latest rise in price had coincided with renewed violence in the Niger Delta on New Year's Day in which 16 people were killed following attacks in Port Harcourt, Rivers State.
OPEC has also warned that the high price of oil would continue until the end of March 2008.
OPEC President and Algerian Energy and Mines Minister, Chakib Khelil, said at the weekend that the steady rise in prices was due to "escalating violence in Nigeria".
A friend in Warri says that Bristow are on notice to reduce the number of helicopters it operates for Shell in the delta.
LONDON, Jan 14 (Reuters) - Royal Dutch Shell has declared a force majeure on crude shipments from its Forcados export terminal in Nigeria after last week's pipeline attack, a spokesman said on Monday. Exports have been halted since Friday due to sabotage at two of its pipelines connected to the Forcados export terminal. Production has not been affected, the spokesman said.
Oil output at Forcados was around 100,000 barrels per day, an industry source said last week, and was expected to reach 200,000 bpd by April.
A force majeure allows companies to suspend contractual obligations, such as deliveries of oil and gas, following unforeseen events without incurring penalties.
Jan 4 (Reuters) - Oil companies have detailed about 547,000
barrels per day of shut-in Nigerian production due to militant
attacks and sabotage.
The amount represents about a fifth of the West African
country's installed output capacity of around 3 million bpd.
The International Energy Agency estimates Nigeria's
sustainable production capacity at 2.47 million bpd.
The following is a breakdown of production cuts in barrels
per day confirmed by oil companies.
Field Operator Output Outage Date Shut In
Forcados/EA Shell (RDSa.L: Quote, Profile, Research) 477,000 Feb 2006
Escravos Chevron(CVX.N: Quote, Profile, Research) 70,000 since 2003
Total: 547,000 bpd