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NLNG Production Suffers Setback

Source: www.gulfoilandgas.com 8/27/2005, Location: Africa

NLNG has been forced to reduce production from its Bonny plant with effect from 26th August. The leak, which ignited on 23rd August, is in the Rumuji to Bonny section of the company's Gas Transmission System (GTS 1), located in the Okrika Local Government Area, which is about 35 kilometres from the plant site at Finima, Bonny Island.

NLNG engineers are currently assessing the damage to the pipeline and preparing to undertake repairs in the safest manner, with minimum disruption to operations. The authorities are fully informed of these developments and NLNG is giving them its full support. The company is also in contact with its customers to ensure due rescheduling of supplies.

Chris Haynes, the Managing Director of the company regretted the incident, which occurred owing to factors beyond the company's control. He assured the public and stakeholders generally that the incident was being taken extremely seriously and that NLNG would be working with the authorities and affected communities within Nigeria to see how such happenings can be avoided in future.

In the meantime, the Company will be effecting repairs to the damaged pipeline, taking utmost safety precautions, with the intention of returning to full operations as soon as possible. NLNG is a joint venture company whose shareholders are the Nigerian National Petroleum Corporation (49%), Shell Gas BV (25.6%), TotalFinalElf LNG Nigeria Limited (15%) and ENI International (N.A.) NV (10.4%).

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