UPDATE 1-Shell repairs two Bonny oil facilities in Nigeria

Tue May 13, 2008 1:01pm BST
 
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By Randy Fabi

LONDON, May 13 (Reuters) - Royal Dutch Shell (RDSa.L: Quote, Profile, Research) has restored some of its shut-in production in Nigeria, repairing two of the four Bonny Light oil facilities damaged by militant attacks, a company spokesman said on Tuesday.

About 164,000 bpd of Bonny Light crude production, or about 40 percent of the Anglo-Dutch major's equity oil output in the West African country, was shut-in due to recent attacks.

This has helped push oil prices to record levels above $120 a barrel.

The spokesman said the two oil facilities that feed into the Bonny Light export terminal in the Niger Delta ramped-up production earlier this week. He declined to say how much output was restored.

"We are making good progress in our repair work. Two locations that were damaged have now been repaired," he said.

The spokesman said repair work at a third location will begin soon. But the security situation near the fourth damaged Bonny facility remained a concern.

Despite the repairs, Bonny Light shipments remained under force majeure, which frees the company from its export contracts.  Continued...

 

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