Nigeria Protesters Besiege Shell’s Kolo Creek Logistics Base

Royal Dutch Shell Plc (RDSA)’s Nigerian unit said protesters from four communities in the country’s southern delta besieged the company’s Kolo Creek logistics base and “tampered” with installations.

The protesters from Imiringi, Elebele, Otuasega and Oruma villages adjoining the base are unhappy “about not being supplied with electricity from company facilities,” Tony Okonedo, a Shell spokesman in Nigeria, said today in an e-mailed statement. Led by youths, they “have tampered with our installations in such a manner that poses serious threat to people and the environment,” Okonedo said.

The company has informed the Bayelsa state government, which has jurisdiction over the area, and is seeking dialogue with the protesters, according to the statement. Shell operates a joint venture in which it holds a 30 percent stake, with the state-owned Nigerian National Petroleum Corp. holding 55 percent. Total SA (FP) owns 10 percent and Eni SpA (ENI) 5 percent.

Oil companies operating in Africa’s top-producing nation often face disruptions from restive communities in southern Niger River delta that seek more benefits from the industry. Attacks by armed groups in the region cut more than 28 percent of Nigeria’s oil output between 2006 and 2006, only subsiding after thousands of fighters accepted a government amnesty.

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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