2nd UPDATE: Shell Says Restarted Nigeria's Soku Gas Plant Sun
01 April 2009 - 11:45PM
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.
Production has resumed at the NLNG plant after the resumption of
supplies from Shell Petroleum Development Co.'s Soku gas plant, but
the force majeure on LNG deliveries hasn't been lifted, a spokesman
for NLNG said Wednesday.
"(The) Soku gas plant is currently providing gas at lower rates
than its maximal capacity and pre-force majeure levels," he said in
an e-mail. The force majeure on deliveries from the plant remains
in place "pending the time SPDC clears all the remaining
operational and other relevant issues," he said.
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 militants. As much as 100,000 barrels a day may be
stolen in the country, the Nigerian government has estimated.
SPDC and NLNG are joint ventures 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