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Reuters: Shell Nigeria starts repairs on leaking pipeline

Fri Jul 28, 2006 2:32 PM GMT
ABUJA (Reuters) – The Nigerian arm of Royal Dutch Shell has started work on repairing a pipeline where a leak has forced the shutdown of 210,000 barrels per day (bpd) in oil output, a spokesman said on Friday.

Shell is losing 180,000 bpd because of the leak discovered a week ago in a section of its Nembe Creek trunk line in Rivers state in the Niger Delta, while Chevron is losing 30,000 bpd that should be going through the same pipeline.

“We are going ahead with repairs at this time,” a Shell spokesman said, adding that the firm could not tell how long the repairs might take.

Shell on Wednesday declared a force majeure, or a release from honouring contracts, on Bonny Light exports because of the leak, but the company has said loadings are continuing at the Bonny terminal.

Shell has not made any official comment on what caused the leak, but a company source in the delta’s main city of Port Harcourt said the damage was accidentally caused by another company working in the area.

Shell is currently losing 653,000 bpd in Nigeria, most of it because of a series of militant attacks on its facilities in February.

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