Shell's Warri Plant to be Shut Down 18 Months

Shell reported it would need 18 months to rebuild its Nigerian flow station shattered in an armed attack that has shut down 40,000 barrels per day (bpd) of its production.

The repairs would cost an estimated $25 million and take longer than an earlier estimate of six months.

The shutdown appeared to be one of the most serious in a series of disruptions of the output of Nigeria's biggest oil producer which has been a main target of local militants demanding a greater share of the country's oil wealth.

Shell reported earlier the shutdown of the 27,000 bpd Olomoro flow station and the 13,000 bpd Owhe gas-to-liquids facility which depends on Olomoro would not affect its Nigeria export program. Shell produces between 800,000 to 900,000 bpd or roughly half Opec member Nigeria's total daily output of just over two million barrels.

The company's facilities have suffered countless attacks by militants in the oil-rich Niger Delta. Fighting among local communities over amenities provided by all companies has also disrupted production of Nigeria's mainstay export.


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