Global Processing

Exxon shuts nearly all Nigerian oil output

April 28, 2008
According to Reuters, Exxon Mobil has shut nearly all its Nigerian oil production, totalling around 770,000 barrels per day (bpd), due to a workers'' strike, a senior oil official and industry sources said recently.

The outage, which represents nearly 40 percent of total Nigerian output, comes after a series of attacks this month by militants in the Niger Delta which has shut-in an additional 169,000 bpd from Royal Dutch Shell.

The problems in Nigeria, the world''s eighth-biggest oil exporter, helped push oil prices to a record high near $120 a barrel.

Exxon, the top foreign oil producer in Nigeria, said earlier that some but not all of its output in the country had been shut by the strike.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) called the strike at Exxon Mobil''s local unit, targeting oil production and exports, after failing to reach agreement with the company over a labor dispute.

The Nigerian government had met with the feuding parties last week to avert any loss in output.

The supply loss brings the amount offline in Africa''s largest oil exporter to 1.33 million bpd, more than half of its output, according to oil companies and industry sources.