The threat action of the Niger Delta militants yesterday took a heavy toll on the nation’s oil sector as Shell Petroleum Development Company shut down its entire operation in the western division and declared “force majeure”.
The action means that over 600,000 barrel of oil have been shut in with the consequence that the company would not be able to meet its crude oil loading commitment to buyers.
The External Affairs Manager Western Division of the oil giant Harriman Oyofo told THISDAY that the action will remain till further notice.
Three days after Niger Delta militias took nine foreigners hostages, the oil firms and families are yet to establish contact with them.
THISDAY checks however gathered that the informal group in the negotiation has been able to establish that the hostages are alive and in good health.
Intelligence source told THISDAY yesterday that possible contact with the militants is expected today when they would be stating their demands.
THISDAY gathered that unlike in the last incidence when the militants were more civil, this time they appear very hot and determine to face the wrath.
Barely 48 hours kidnapping the foreigners the group under the name, Movement for the Emancipation of the Niger Delta (MEND) gave a fresh seven-day notice to multi-national oil firms in the region to vacate their offices.
The group also said that they will detain the nine oil workers in the Creeks until their demands which is the demand of the Niger Delta people are met.
Shell Petroleum Development Company on Sunday suspended the export of over 380,000 barrels daily from its Forcados Terminal.
The company is also evacuating all its workers in the volatile area of the Niger Delta.
Weekend�s attack on oil facilities by the militant group has now put under serious threat, the supply of petroleum products and electricity in some parts of the country.
The militant group, however, said the attacks on the oil facilities were in retaliation for the military air raids on the Ijaw community of Okerenkoko last week.
In an e-mail sent to media houses, MEND said it would keep the nine expatriate oil workers until the Federal Government met their demands including withdrawal of troops from the Niger Delta and allowing the communities control of their oil resources.
MEND also threatened to fire rockects at international oil tankers and attack any person or group of persons found in any oil company in the region after seven days of releasing the statement.
Militants had weekend set fire on the oil export terminal, attacked a barge belonging to US oil service firm, Wilbros, taking hostage nine expatriate oil workers in the process and also blew up the crude oil pipeline in the Chanomi Creek area.
Officials of the Nigerian National Petroleum Corporation (NNPC) yesterday lamented the attack on the pipeline, which could disrupt product supply to the Kaduna refinery and also cripple operations at the Warri refinery.
The Chanomi Creek pipeline was only fixed last November after more than two years it was out of use following a similar attack, which led to the closure of the Kaduna and Warri refineries.
According to the officials, the attack came at a time the corporation�s fuel supply programme had been structured on fewer imported cargoes and an increase in domestic supply.
NNPC spokesman, Dr. Levi Ajuonuma, however, said the corporation would immediately put contingency measures in place to ensure that the development did not create fuel scarcity in the country.
�The latest incident although came just when all the refineries were operating at an average of 80 percent, nevertheless, the NNPC management is reassuring the nation that it will do its best to ensure that fuel scarcity never reoccur,� he said.
�At the same time we are appealing to the community to allow repairs of the damaged pipeline so that normal operations could be restored,� he added.
Meanwhile, Nigeria’s electricity generation yesterday lost another 850MW to disruptions in gas supply brought about by the disturbances in the Niger Delta area. The PHCN had last week reported a 550 MW cut down on its power generation as a result of shortfall in gas supply to its power stations.
Authorities of the Power Holding Company of Nigeria (PHCN) said the drop in power generation came about as a result of destruction of pipelines used in pumping gas to three of the nation’s key power stations, Egbin, Afam and Delta.
In a statement issued yesterday evening and signed by PHCN Acting General Manager, Public Affairs, Mrs.
Effuru Igbo, the management said “recent disturbances in the Niger Delta have affected installations for supply of gas to our power stations at Afam, Egbin and Delta”.
“The disruption in gas supply to these stations will mean a reduction in power generation up to 850MW. To amilorate the situation we will increase generation from our Hydro Dams at Kainji and Jebba”, she said.
Only last week, the power utility company reported a loss of 550MW resulting from the shutting down of some of the units in its power stations due to shortage in gas supply.
The statement said while it is taking advantage of the result of better managment of the reservoir at the Dams to urgent power supply, there will still be need for load shedding to maintain system stability.
“Where we are pleased to report that this year we can take advantage of the result of better management of the reservoirs, however until the gas facilities are fully restored, there will still be need for daily load shaedding to maintain system stability”.
The company said it wishes to “appeal to its esteemed customers to over the development and to seek for their understanding during this difficult period”.
The action of the militants received tacit suppoprt of the the Ijaw elders when the National Leader, Chief Edwin Clark has said that the kidnap of the nine expatriate oil workers is the people�s way of protecting themselves from further bombardment by the Nigerian Armed forces.
�They used them men as protective shield from further attack by the military�, he disclosed.
Clark said this in Warri while briefing newsmen of the outcome of the meeting Governor James Ibori had with Ijaw Leaders on how to secure the release of the oil workers.
According to him, the leadership of the people have resolved to work with government and that, as part of this effort, a 10 man committee of five Ijaw leaders and five government officials have been set up to go to the area where the kidnap took place and find ways to secure the immediate release of the men.
Clark was however very angry at what he called �the uncouth language� the Federal government used in condemning the action of the youths as it is capable of sending wrong signals to the militants.
The elder statesman accused the military of provoking the action by attacking the Ijaw communities where many persons were killed and wounded.
�We met in Yenagoa a few days ago, we decided that a truce should be maintained soon after the four other expatriates were released, but we were embarrassed that within four days, the military attacked�
He therefore appealed to the kidnapers to release the men as one of them is diabetic and requires medical attention regularly.
Meanwhile, the traditional ruler of Ogulagha, Captain Joseph Timiyan, the Ebenanaowei of Ogulagha Kingdom, whose territory houses the Forcados Terminal where the kidnap took place, has condemned the action and disassociated his people from the attack.
The royal father, a press statement signed by the Kingdom�s secretary, Chief Okekiri Iyelagha said that �he was embarrassed by the action, as our youths who are law abiding are not party to this dastardly action directed at Government property in our area�.
He therefore urged government to do all it can to secure the release of the men and ensure the protection of lives and property in his Kingdom.