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People’s Daily Online (China): Nigeria cuts daily crude output by 26 percent

The crude production in Nigeria has been cut by 675,000 barrels per day (bpd), or 26 percent of the country ‘s normal daily output, local leading daily This Day reported on Monday.

“The cut is a result of recent militant attacks in the Niger Delta and a pipeline leak there last week, ” the report said.

Royal Dutch Shell, which produces half of Nigeria’s oil, said last Tuesday a leak of an oil pipeline in south Nigeria had cut output there by 180,000 bpd. As a result of the leak whose reason remains unclear, the contracts of Shell might not be honored in July and August.

There were also 477,000 barrels offline in the western region of the oil-rich Niger Delta. Altogether, Nigeria had to cut oil output by 675,000 bpd because of a string of leakage accidents.

However, the calculation did not take into account a recent attack at an oil pumping plant operated by Italian energy group ENI.

Last Wednesday, ENI said local militant youths attacked its Ogbainbiri plant in south Nigeria on Tuesday night. The plant has an oil extraction capacity of 35,000 bpd.

Militants and communities in the oil-rich Niger Delta have intensified violent actions against foreign oil workers and installations since the beginning of this year. During the period, some 25 security personnel have been killed when militants seeking control of Nigeria’s multi-billion-dollar oil and gas resources launched attacks on oil firms and personnel in the region.

At least 32 foreign oil workers have been kidnapped but all have been released unharmed after days or weeks in captivity.

Nigeria is Africa’s largest oil producer and the world’s sixth largest crude exporter with a normal output of 2.6 million bpd.

Source: Xinhua

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