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Shell says thieves hit Nigerian pipelines

Associated Press / August 16, 2010

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LAGOS, Nigeria — Royal Dutch Shell PLC warned yesterday that thieves in Nigeria’s oil-rich and restive southern delta are increasingly targeting the company’s crude pipelines, including at least three incidents of sabotage this month alone.

In a statement, Shell’s Nigerian subsidiary said damaged pipelines near Bonny in Rivers state bore signs of drilled holes and hacksaw cuts. The subsidiary said the damage suggested that thieves had probably tapped into the lines to siphon off crude oil to sell on the black market.

The subsidiary did not give an estimate of how much crude oil it had lost in the incidents, though it acknowledged the damaged pipelines had leaked crude oil into the environment. The statement said the company put containment booms into the surrounding waterways and hired a contractor to begin a cleanup.

“The environmental and social cost of widespread sabotage is simply unacceptable,’’ said Babs Omotowa, Shell’s vice president overseeing health and safety issues in Africa.

Shell, which discovered oil in Nigeria 50 years ago, remains the dominant oil major in the West African nation. Its Nigerian subsidiary partners with the state-run Nigerian National Petroleum Corp. Oil revenue from Shell and other companies operating in Nigeria provides about 80 percent of the country’s government funding.

But environmentalists and community activists routinely criticize Shell, blaming the company’s aging pipelines and indifferent corporate culture for frequent oil spills. Environmentalists estimate that as much as 550 million gallons have poured into the Niger Delta since the discovery of oil. That would be at a rate roughly comparable to one Exxon Valdez disaster per year in the delta.

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