HomeIndustry SectorsGenerationChevron suspends production in Nigeria

Chevron suspends production in Nigeria

Nigerian oil
Abuja, Nigeria — ESI-AFRICA.COM — 21 December 2010 – American energy firm Chevron has announced that it has suspended production from an oil pipeline which has been breached in Nigeria’s Delta state.

Chevron said it was investigating the damage to its Dibi-Abiteye pipeline, but it did not say how much production would be lost from shutting down the stream.

“We have suspended production to minimise environmental impact and have informed relevant government agencies and other stakeholders,” the company said in a statement. “The breach is being investigated and we are reviewing our operations.”

A militant faction in Nigeria’s oil-producing Niger Delta has claimed responsibility for the attacks on oil facilities operated by Chevron and Italian oil company Agip.

Nigeria is home to Africa’s largest energy industry, but its oil and gas output has been held back for years by strikes on pipelines and infrastructure by militant groups, who say they are fighting for a more even distribution of the oil wealth.

Previous militant campaigns have knocked out a significant chunk of the OPEC-members’ oil output, currently averaging around 2.2 million barrels per day, and costing as much as US$1 billion a month in lost revenues.