Attacks by militant have caused a drop in the oil output from Nigeria. Oil Minister Emmanuel Ibe Kachikwu stated while in Lagos that production had fallen to 1.56 million barrels per day because of the attacks.
The minister said that output had been reduced by approximately 700,000 barrels per day. The Qua Iboe, Bonny Light, Brass River and Forcados oil streams are all under force majeure for the time being.
In the meantime, the standoff at the Escravos Tank Farm in the Ugborodo community, Warri South-West Local Government Area, Delta State continues. The people of the Ugborodo community have vowed to continue the standoff until Chevron Nigeria, which owns the farm, at least looks into their demands.
The group said that it appreciated the mediation efforts of state governor, Senator Ifeanyi Okowa. Ofe Nene, who is the National Youth chairman of Ugborodo community, said in a letter that he was grateful for Okowa's work but added: "We have been at Chevron facility's gate, both day and night since August 8, 2016, not because we enjoy the torrent and very dangerous sea breeze of the Atlantic Ocean, but because we need the above stated changes to be effected in our community Except the issues are addressed, we shall not leave Chevron's tank farm gate in Ugborodo. This is because we cannot continue with this pattern of Chevron always going to negotiation table with Ugborodo community to cover prominent and pressing issues with other ones, thereby attending to the colossal issues partially."
In a related story, the members of the Benikrukru, Gbaramatu Kingdom, which is located in the Warri South-West council, gave Chevron seven days to do something about the marginalization of the community in terms of contracts, employments and the company's corporate responsibility to the community.
Victor Eseimieghan, who is the community chairman, stated: "In the light of the foregoing, Chevron and government are hereby given a seven-day ultimatum to address these grievances or Benikrukru community would have no other option than to shut down the operations of Chevron in Abiteye Field…Chevron has been flagrantly violating the local content requirements in the area of contracts in its dealings with Benikrukru community over the years."
Lincoln Brown for Oilprice.com
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