Eric Watkins
Special Correspondent
LOS ANGELES, Apr. 25 -- Nigerian oil production was cut by an estimated 1 million b/d, about 40% of the country's recent output of 2.5 million b/d, by a workers' strike as well as an attack by militants on a main oil pipeline.
Oil production by ExxonMobil Corp.'s local subsidiary Mobil Producing Nigeria Unlimited has been cut by 90% or nearly 780,000 b/d due to the strike by MPN workers, according to George Sola Olumoroti, Mobil branch chairman of the Petroleum and Natural Gas Senior Staff Association of Nigeria (Pengassan).
Olumoroti said MPN produces 866,000 b/d of crude, leaving around 87,500 b/d of oil in production at the moment. Earlier estimates by union officials put the stoppage at around 200,000 b/d.
ExxonMobil confirmed the strike but did not specify the exact amount of output that has been affected. The firm said it was working with the Nigerian government to resolve the outstanding issues and to minimize supply disruptions.
Meanwhile, Nigeria's main militant group—the Movement for the Emancipation of the Niger Delta—said it attacked a crude oil pipeline operated by Royal Dutch Shell PLC in Rivers state, in southern Nigeria, on Apr. 24.
Shell confirmed the Nigerian militants' claim through community contacts, saying the installation affected is located around Kula in the eastern Niger Delta. Shell was forced to shut in 170,000 b/d of production as a result of the attack.
Following the assault, Shell was forced to declare that it would not be able to meet its contractual obligations for crude deliveries in May from its 400,000 b/d Bonny field.
MEND said it will continue to attack oil installations in the country in its effort to gain a greater share of Nigeria's revenues from oil, much of which lies in the southern Niger Delta.
Contact Eric Watkins at [email protected].
