(MarketWatch) — Shell Petroleum Development Co. of Nigeria is “nowhere near” resuming operations despite reports to the contrary, a Shell Nigeria official said Thursday.
Shell evacuated its staff from most of its onshore facilities in western Niger Delta following a string of attacks by local militants on personnel and installations.
Funsho Kupolokun, managing director of state-run Nigerian National Petroleum Corp. (NNP.YY), told journalists in Houston Wednesday that Shell would resume operations “soon, even in a matter of days.”
However, the Shell spokesman said resuming operations is “the last that would happen” in the long process involved.
The militant attacks have cut Nigeria’s crude oil production by about 500,000 barrels a day, out of which 455,000 b/d come from a joint venture operated by Shell.
Attacks and threats of attacks by militants fighting for regional control of oil resources have created uncertainty for oil companies in the Niger Delta.
Crude oil production or loading at the Qua Iboe Terminal in Eket, operated by Mobil Producing Nigeria Unlimited, a unit of ExxonMobil (XOM), has been disrupted at least three times in less than three weeks by the activities of people suspected to be militants.
May52006