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Shell cuts Nigerian oil exports

From CNN Correspondent Jeff Koinange in London

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Royal Dutch/Shell Group is Nigeria's top oil producer.
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Royal Dutch Shell

(CNN) -- International oil giant Shell said Thursday it has been forced to suspend some exports of 110,000 barrels a day because of community unrest in the Niger River Delta in Nigeria.

"We're suspending some of our operations following a disruption of production." said a Shell senior information officer.

He said the disruption could continue until January and the company could end up unable to export more than 2 million barrels.

"We're holding talks with community leaders and hope to resolve this issue sooner rather than later," the information officer added.

Shell is Nigeria's largest oil multinational, exporting a little over a million barrels a day.

Unrest in the volatile Niger Delta often causes disruption in oil production and export, leading to losses in the millions for the foreign multinationals.

The Nigerian government reported Thursday that a blast Tuesday at an oil production facility in Lagos damaged a pipeline. It said the blast was as at a Nigerian Pipeline Company facility, unrelated to Shell.

The government said 20 people who were stealing fuel were killed in the blast.


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