2nd UPDATE: Nigeria Militants Say Blew Up Agip Pipeline
June 19 2009 - 5:22AM
Dow Jones News
The main militant group in Nigeria's Niger Delta said Friday it
blew up a pipeline belonging to a subsidiary of Eni SpA (E), the
latest of a string of attacks against oil companies.
Militants have escalated attacks on the oil industry in
retaliation for an army offensive that started mid-May.
In an email, the Movement for the Emancipation of the Niger
Delta said "a major pipeline which delivers crude oil to the Brass
export terminal was blown up at the Nembe creek in Bayelsa state
this morning Friday" by its fighters.
It said the pipeline belongs to Agip, a unit of Eni. Eni
couldn't immediately comment. The Brass facility has a capacity of
around 160,000 barrels a day.
Last month, Eni declared force majeure - a legal protection
clause for not meeting contractual obligations to customers - on
52,000 barrels a day of crude from the Brass terminal.
The company said the force majeure, which was lifted after a
week, was due to pipeline damage, without specifying if it was
sabotage.
Chevron Corp. (CVX) and Royal Dutch Shell PLC (RDSB.LN) have
also been attacked by the militants. One attack alone in May cost
Chevron 100,000 barrels a day in lost production.
In total, Nigeria estimates 1 million barrels a day of its
output is down due to unrest but also to oil theft and lack of
maintenance.
-Benoit Faucon, Dow Jones Newswires; +44 20 7842 9266;
benoit.faucon@dowjones.com
(Liam Moloney in Rome contributed to this report.)
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