Global Processing

Fire Hits Shell Pipeline in Nigeria

May 10, 2010
The Associated Press reports Royal Dutch Shell PLC said that a fire struck one of its major crude oil pipelines running through Nigeria''s southern delta, cutting into production. Shell is investigating what caused the fire on its Trans Niger pipeline, company spokesman Tony Okonedo said. Okonedo declined to say how badly the fire affected production. The pipeline runs through the eastern part of the Niger Delta of southern Nigeria. The part of the pipeline affected sits in Ogoniland, an area Shell withdrew from in 1993 while it was under attack from activists. Shell''s Nigerian subsidiary faces regular attacks by militants who have targeted pipelines, kidnapped petroleum company workers and fought government troops since 2006. Shell''s chief executive officer has even hinted that the company can no longer depend on Nigeria as a profit-maker, despite its 50-year history in the country. The production disruptions in Nigeria have affected global oil prices in the past. Nigeria was the No. 4 oil exporter to the U.S. in February, sending about 896,000 barrels of crude a day to the U.S., outstripping even Saudi Arabia.