UPDATE: Shell Says Restarted Nigeria's Soku Gas Plant Mar 29
April 01 2009 - 8:21AM
Dow Jones News
The Shell Petroleum Development Co. restarted the Soku gas and
condensate plant in Nigeria on March 29 after a shutdown of several
months to repair pipeline damage caused by thieves, a spokesman for
Royal Dutch Shell PLC (RDSB.LN) said Wednesday.
The plant is not yet producing at full capacity, but production
is in the process of ramping up, he said.
"We removed 170 illegal connections from the condensate
pipeline," that were being used for theft and have increased
security in the area, the spokesman said.
The company is also cleaning up environmental damage caused by
the condensate theft, he said. Photos previously seen by Dow Jones
Newswires showed considerable environmental damage, with green
scrubland around the plant's perimeter fence turned black by
condensate leaks.
Before the shutdown in November Soku was supply 1.1 billion
cubic feet of gas a day to the Nigerian Liquefied Natural Gas plant
and 30,000 barrels a day of condensate to an export terminal.
NLNG declared force majeure on deliveries shortly after the Soku
shutdown. The company wasn't immediately available for comment.
Oil production operations in Nigeria have suffered continued
disruptions from damage caused to pipelines and other facilities
either by illegal connections made to steal oil or deliberate
sabotage by millitants. As much as 100,000 barrels a day may be
stolen in the country, the Nigerian government has estimated.
SPDC is a joint venture between Shell, Nigerian National
Petroleum Co., Eni SpA (E) and Total SA (TOT).
Company Web site: http://www.shell.com
-By James Herron, Dow Jones Newswires; +44 (0)20 7842 9317;
james.herron@dowjones.com