SHELL DECLINES PROTECTION IN NIGERIA

As Nigeria's oil workers' strike enters its sixth week, Shell Petroleum Development Co. of Nigeria Ltd. has refused a government offer of military protection for its oil fields. Shell apparently is performing a balancing act as it seeks to distance itself from the politics of the labor dispute. Meantime, Shell-operated fields reportedly are producing only 500,000 b/d, down from almost 1 million b/d during normal times.

Aug. 15, 1994

2 min read

As Nigeria's oil workers' strike enters its sixth week, Shell Petroleum Development Co. of Nigeria Ltd. has refused a government offer of military protection for its oil fields.

Shell apparently is performing a balancing act as it seeks to distance itself from the politics of the labor dispute. Meantime, Shell-operated fields reportedly are producing only 500,000 b/d, down from almost 1 million b/d during normal times.

Brian Anderson, Shell Nigeria chairman, said Aug. 8 in Lagos the company is seeking to maintain as much production as possible while preventing escalation of danger in a delicate situation.

"We have rejected the government's offer of military protection to help a return to full production," Anderson said. "I do not believe protection is possible in some of our fields.

"There are too many small fields, too exposed to attack or sabotage. We do not believe calling in troops is the answer. It could lead to more serious trouble."

A Shell official also announced the company is maintaining force majeure declared Aug. 1 on oil deliveries at Bonny and Forcados terminals (OGJ, Aug. 8, p. 25).

Meanwhile, it appeared other operators were losing production as strike action spread. Chevron Corp. reportedly has lost about 15% of its 350,000 b/d gross production, while Mobil Oil Nigeria Ltd. was said to have been less affected.