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Nigeria Says Pipeline `Breach' Hasn't Disrupted Refinery

By Dulue Mbachu

Oct. 3 (Bloomberg) -- State-run Nigerian National Petroleum Corp. said a ``breach'' in a crude oil pipeline hasn't disrupted a nearby refinery.

The fault at the pipeline at Chanomi Creek, which supplies crude to the Warri refinery, wasn't caused by sabotage, company spokesman Levi Ajuonuma said by phone from the capital, Abuja, today. He said the refinery is ``working,'' without giving further details.

Nigeria's The Punch newspaper reported yesterday that damage to the pipeline, which may have been caused by a militant attack, had cut crude deliveries from Chevron Corp.'s local unit to the 125,000-barrel-a-day Warri refinery. The plant may be forced to stop operating as soon as today, the Lagos-based newspaper said, citing an unidentified official at the facility.

Chevron said yesterday that its crude supplies were flowing as normal through the Chanomi Creek pipeline in Delta state.

Violence in the delta region has cut more than 20 percent of Nigeria's crude exports since 2006. The west African country was the continent's leading oil producer in July and August, according to Bloomberg estimates.

To contact the reporter on this story: Dulue Mbachu in Lagos via the Johannesburg bureau at abolleurs@bloomberg.net

Last Updated: October 3, 2008 06:44 EDT

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