Oil still spurts in Nigeria

2004-06-09 15:48

Lagos - The major oil multinationals operating in Nigeria, including Royal Dutch/Shell and ChevronTexaco Corp, said the general strike which began on Wednesday has not affected production, but they are monitoring the ongoing situation.

Oil unions joined the nationwide protest against domestic fuel prices on Wednesday, having previously vowed to halt exports from Nigeria - Africa's largest crude supplier - with exports of more than 2 million barrels a day.

"We are still studying the effect of the strike on our work. At the current time we are still producing crude, said Don Boham, head of public affairs in Nigeria for the Anglo-Dutch giant Shell.

He added, "some people came to work this morning".

"We have a contingency plan for continuity of operations. We really don't know regarding exports. Everybody is worried about the situation. We want a quick resolution of the crisis, we want a quick return to normalcy," Boham said.

Deji Haastrup, public affairs manager at Nigeria's next biggest producer, the US-based ChevronTexaco Corp, said office work has been disrupted by the industrial action but production remains so far unaffected.

"It has no effect at all on our production. In our city offices, the workers haven't been able to come to work. Offices are not operating at their normal level. All I know is that we continue to produce crude oil," he said.

"The situation has had no effect on exports. We are monitoring the situation and we'll do what is necessary," he added.

An official from the French multinational TotalFinaElf said his firm is also monitoring the situation closely.

"We don't have any reaction, workers are on strike. ...The production of crude oil is still going on," he said.

"We are not expecting to be affected at least for now," he said.

Energy traders are closely watching events in Nigeria, amid fears that a protracted strike may disrupt exports at a time when world prices are already soaring and the oil cartel Opec is trying to increase output.

Nigerian labour leaders ordered the general strike to demand that President Olusegun Obasanjo honour a pledge to cut the pump price of petrol, diesel and kerosene for domestic consumers.

- AFX