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Shell Suspends Oil Output From Nigerian Terminal


The oil company Royal Dutch Shell says one of its key oil terminals in Nigeria cannot honor its export contracts due to security problems.

The company issued a statement Thursday saying security concerns have prevented workers from repairing pipeline leaks at the Bonny terminal in the West African nation. Shell says it will not be able to meet orders for 130,000 barrels of light crude oil per day through March.

Shell invoked a contractual provision that lifts delivery obligations in case of events out of the company's control.

Armed attacks and kidnappings by rebels in the Niger Delta have disrupted oil production over the past two years and reduced by a quarter regular oil output of 2.5 million barrels per day.

Some information for this report was provided by AFP, AP and Reuters.

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