New operator to replace Shell in Nigeria's Ogoniland: president
June 04, 2008
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Nigerian President Umaru Yar'Adua on Wednesday said Anglo-Dutch oil giant Shell would be replaced by another operator by the end of the year in the volatile Niger Delta's oil-rich Ogoniland region.
Yar'Adua told the Nigerian community in South Africa, where he is on an official visit, that "by the end of the year another oil operator will take over Shell Petroleum interests in Ogoniland," according to a statement from his office.
Speaking in Cape Town, Yar'Adua said it was clear "there is a total loss of confidence between Shell and the Ogoni people" and for that reason "another operator acceptable to the Ogonis" will take over from Shell.
"Nobody is gaining from the conflict and stalemate, so this is the best solution," Yar'Adua was quoted as saying in a statement sent to AFP.
Shell set up base in Nigeria in 1956 when petroleum was first discovered in the country and is Nigeria's largest oil operator.
Oil companies and their personnel in the Niger Delta are being increasingly targeted by separatist militants who have stepped up a campaign of kidnappings and sabotage.
The loss of production in Nigeria has been one of the factors behind the surge in oil prices over the last two years.
Nigeria is the world's eight oil exporter and was until recently Africa's largest producer until it was overtaken in April by Angola.
Angola produced 1.873 million barrels per day on average in April, trumping the 1.818 million bpd produced by Nigeria.