Nigeria’s oil fortune dips as violence rises in Niger Delta
By Roland Perry
Increasing violence is affecting Nigeria’s oil output. Africa’s crude oil giant has reduced its crude oil production to about 1.3 million barrels per day (mbpd), some industry analysts claimed in Lagos.
Following attacks by millitia on oil installations, companies are shutting down production to protect their investment and workers. Shell Petroleum Development Company (SPDC) has shut its oil production and blamed a recent attack on its Trans Ramos pipeline in Aghoro-2 in Bayelsa State by militia for its actions.
Raging violent crises had forced production limit to about 1.6mbpd
before the recent military actions by to stamp out militia in one of
Nigeria’s most tempestous region.
Government in Abuja has offered amnesty to militia ready to lay down their arms. President Musa Yar Adua is expected to make a national broadcast this week on the conditions for amnesty.
But for many experts, the restiveness in the Niger Delta is not
likely to abate immediately raising fears that the country crude oil
set targets of 4mbpd and reserves of 40 billion barrels by 2010 have
become unrealistic.
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