Chevron needs $ 600 mm to repair damages at Niger Delta facilities

May 05, 2005 02:00 AM

US oil firm, ChevronTexaco, said that it would require $ 600 mm (N 79.8 bn) to repair its damaged oil production facilities west of the Niger Delta, in a bid to restore the 140,000 bpd of crude lost in the past two years.
Nigeria's export of crude oil faces a major hurdle ahead, following the decision by world's richest energy consuming nations, including the US and Japan, which called for measures to curb their dependence on imported crude oil which is becoming more expensive due to galloping prices.

General Manager, Public and Government Affairs of Chevron Nigeria Limited, Mr Femi Odumabo, told that the company is still battling hard to restart production facilities that were shut down since March 2003, when community crises first broke out in Warri, Delta State. Apart from the financial burden involved in restoring production, Odumabo said the company also faces the uphill task of getting the cooperation of the communities in getting back to the locations of the facilities.
"We are still losing 140,000 bpd of crude oil due to closure of the facilities. Some of these facilities were destroyed, making repairs difficult," he said. "At the same time, we are working with the communities. We are discussing and negotiating with the state government and the communities, to see how we can get their cooperation to be able to go back to locations and restart the facilities," he said.

Odumabo, who spoke on the company's new direction on treatment of community issues launched, said Chevron was hopeful that substantial volume of the 140,000 bpd production would be brought back before the end of this year.
The company's Escravos Oil Export Terminal was first invaded by Ijaw and Itsekiri women in August 2002, shutting the terminal for about two weeks. Violent ethnic clashes in the Warri area in March 2003, led to the total evacuation of Chevron staff from six locations in the area.

The company's oil production, according to him, currently stood at 390,000 bpd compared to its 530,000 bpd installed capacity. ChevronTexaco has been losing on the average $ 7 mm (N 931 mm) per day. 60 % or $ 4.2 mm represents the Nigerian government's share of the loss.
"We think the high price of energy, oil, gas and coal, is hurting the economy, less in OECD countries, but more in the less developed countries," Claude Mandil, head of the 26-nation IEA said after two-day ministerial talks on supply security. "That's a problem which is not affordable in the long term," he said

Speaking during parallel ministerial talks at the OECD, the think tank's chief said high oil prices had not yet, however, translated into a sharp acceleration in global inflation.
"To everyone's surprise, oil prices have not yet spilled over in any meaningful way into the economy at large, certainly not in terms of inflation," the OECD's Donald Johnston said.

Economists increasingly blame high energy costs for what seems to be an unexpected slowdown in the European economy. The US economy has also lost steam and grew at its slowest pace in two years in the first quarter. Worldwide surveys of manufacturers showed factories in the United States and Europe shifted down another gear in April, indicating an oil-induced soft patch in economic activity persisted into the second quarter.
The US, the world's largest consumer, indicated that high oil prices could be around for years. The country is Nigeria's biggest consumer.

Source: This Day
Alexander's Commentary

Change of face - change of phase

In the period of July 20 till August 3, 2015, Alexander will be out of the office and the site will not or only irreg

read more ...
« June 2020 »
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

Register to announce Your Event

View All Events