Mail & Guardian Online (Nigeria): Shell resumes limited operations in Nigeria: “Shell said on Saturday it has resumed limited operations in southern Nigeria after the explosion of a pipeline but warned it is still not in a position to honour its commitments to clients.”: Christmas Day, 25 December 2005

Lagos, Nigeria   

Shell said on Saturday it has resumed limited operations in southern Nigeria after the explosion of a pipeline but warned it is still not in a position to honour its commitments to clients.

"We have started limited operations. One of our fields has partially reopened in Kolo Creek, and there is limited loading at Bonny," a spokesperson said.

"Force majeure is still in place; we don't know for how long it will remain."

The Anglo-Dutch oil company declared on Wednesday a state of force majeure, meaning it could legally breach the terms of its contracts.

The company said on Friday the fire at the pipeline had been brought under control, while a shadowy group claimed responsibility for the deadly blast that started it three days ago.

The pipeline is located in the oil-rich Niger Delta region, which was put under a state of alert by President Olusegun Obasanjo after at least eight people were reported to have died in the blast.

Shell said the fire and the measures taken to contain it have cost the company 180 000 barrels a day in lost production.

The loss amounted to more than 7% of the daily output of Nigeria, Africa's biggest crude producer and sixth-biggest worldwide exporter. -- Sapa-AFP

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