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Attacks cut 1.6 mln bpd of Nigeria oil output-govt

ABUJA, July 22 | Wed Jul 22, 2009 11:37pm IST

ABUJA, July 22 (Reuters) - About 1.6 million barrels per day of Nigeria's oil production has been shut down due to violence in the Niger Delta, home to Africa's biggest oil and gas industry, Nigeria's oil minister told Reuters on Wednesday.

The world's eighth largest oil exporter is currently pumping less than 2 million bpd, significantly less than its installed capacity of over 3 million bpd.

"This shut-in amount is more than half of our production capacity of 3.2 million bpd and this is all due to the activities of the militants in the Niger Delta," Rilwanu Lukman said after a cabinet meeting.

Oil production estimates in Nigeria vary widely depending on the government or industry official. A spokesman for state-run oil firm NNPC last month estimated shut-in production at 1.26 million bpd.

Industry experts say Nigeria has never been able to produce at its full installed capacity of 3 million bpd due to violence in the Niger Delta and to funding problems. Attacks by the Movement for the Emancipation of the Niger Delta (MEND), the country's main militant group, has forced oil companies to shut down around 300,000 bpd of production since May.

The militant group, which says it is fighting for a fairer share of the region's oil wealth, has declared a 60-day ceasefire to allow for peace talks with the government.

But it has threatened oil companies that if it tries to repair damaged pipelines, flow stations and other facilities that rebels will attack them again. [ID:nLL651851]

(Editing by Keiron Henderson)

(For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com/ ) (Reporting by Felix Onuah; Writing by Randy Fabi)

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