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Chevron's oil pipeline in Nigeria repaired
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10:03, July 16, 2008

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Chevron Corporation said operations have restarted at a Nigerian oil pipeline attacked by militants in June, Chevron spokeswoman Margaret Cooper said late Monday.

"The pipeline is back into service and production is restored," she said but declined to elaborate on whether the company's force majeure on Nigerian Escravos oil exports had been lifted.

The U.S. oil major declared force majeure -- a legal clause allowing producers to miss contracted deliveries because of circumstances beyond their control -- on its Nigerian Escravos exports after armed youths blew up the Abiteye-Olero crude pipeline in the western Niger Delta.

The assault cut about 120,000 barrels a day of crude output, according to military officials at the time.

Chevron declined to say how much production was affected by the attack but said output losses would delay loadings of some Escravos cargoes.

The Abiteye-Olero pipeline's return to service comes days after Royal Dutch Shell PLC (RDSB.LN) lifted its force majeure on exports from its 225,000 barrels-a-day Bonga offshore oil field in Nigeria following a June militant attack.

But even with those facilities operating again, Nigeria still has roughly 600,000 barrels a day of oil production shut in due to past militant attacks, equivalent to around a quarter of the country's effective production capacity.

Late last week, Nigeria's main militant group, the Movement for the Emancipation of the Niger Delta, vowed to end a ceasefire on Saturday that was previously agreed between some militias and the Nigerian government.

Source:Xinhua



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