Royal Dutch Shell makes Nigeria production warning

6:34 AM, Oct 23, 2012   |    comments
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LAGOS, Nigeria -- Royal Dutch Shell PLC has warned that it will not be able to make its production estimates for two types of crude oil in Nigeria.

Shell said in a statement Tuesday that it declared a "force majeure" warning for shipments of its Bonny and Forcados crude oil. That means it is impossible for the company to cover the promised supply from the field.

Shell blamed the Bonny warning on a fire cause by a ship involved in stealing crude oil from one of its pipelines, as well as flooding in the area.

Shell said its local subsidiary in Nigeria also couldn't reach the Forcados estimates over damage caused by oil thieves on another pipeline.

Crude oil thefts have increased in Nigeria since a 2009 government-sponsored amnesty for militants there.

The Associated Press

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