US embassy cable - 04LAGOS2110

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 002110 
 
SIPDIS 
 
STATE FOR AF/W 
STATE FOR EB/ESC/IEC/ENR/BLEVINE 
STATE FOR DS/IP/AF 
STATE FOR INR/AA 
STATE PASS DOE FOR DAS JBRODMAN AND CGAY 
STATE PASS TREASURY FOR ASEVERENS AND SRENANDER 
STATE PASS DOC PHUEPER 
STATE PASS TRANSPORTATION MARAD 
STATE PASS EX-IM, OPIC AND TDA 
 
E.O. 12958: DECL: 10/14/2014 
TAGS: EPET, EINV, PGOV, ASEC, NI 
SUBJECT: NIGERIA PIPELINE EXPLOSION: NO INJURIES, SMALL 
PRODUCTION LOSS FROM PIPELINE EXPLOSION 
 
Classified By: Consul General Brian Browne for Reasons 1.5 (B & D) 
 
Summary 
-------- 
 
1.  (SBU)  On 10 October, a leaking Shell crude oil export 
pipeline which had been vandalized caught fire in the River 
State.  There were no injuries reported.  Shell confirms 
illegal bunkering as the cause of the leak.  Shell will cut 
production by 20,000 barrels a day for a few days while the 
pipeline is being repaired.  The community advocacy group 
Movement for the Survival of the Ogoni People (MOSOP) has 
publicly complained about Shell's handling of the leak. 
MOSOP also claims their representatives and journalists 
investigating the incident were arrested by the State 
Security Service. 
 
Bunkering Causes Shell Pipeline Fire; No Injuries 
--------------------------------------------- --------- 
 
2.  (SBU)  On 10 October, a Shell crude oil export pipeline 
linked to Bonny Export Terminal caught fire.  The Shell 
External Relations Director confirmed that bunkering caused 
the pipeline leak.  A hacksaw was used to cut the pipe, which 
then leaked oil into a nearby pond; someone set the leak 
point aflame, causing an explosion in the pond.  Shell had no 
reports of any injuries from the incident.  Press reported 
that local youths initially prevented Shell from access to 
the site; the External Relations Director confirmed Shell has 
since been able to access the site.  In addition to reports 
of profits gained by bunkering, miscreants often caused fires 
to create a pretext for environmental and other damage claims 
against the company, he remarked. 
 
Shell Confirms Small Production Loss; Clean-Up Not Started 
--------------------------------------------- -------- 
 
3.  (SBU)  Shell engineers are currently attempting to stop 
the leak.  They are assessing the scope of the clean-up 
operation, but have not yet begun to clean the spill. 
Repairs to the pipeline will take a few days. During that 
period, oil will be diverted to a narrower pipeline, and 
production cut by 20,000 barrels a day.  (Note:  Shell 
produces just over half of Nigeria's 2.3-2.4 million 
barrels/day, so the loss represents less than 1 percent of 
Shell's daily output.  End note.) 
 
MOSOP Notes Env. Damage, "Inadequate" Shell Response 
--------------------------------------------- ---------- 
 
4.  (SBU)  The community advocacy group, Movement for the 
Survival of the Ogoni People (MOSOP), has publicly complained 
about Shell's handling of the leak.  Press reports stated 
that MOSOP President Mr. Ledum Mitee, alleged "up till now 
(Tuesday) containment measures had not been taken."  He said 
that oil from the leak had  reached a tidal creek and was 
threatening a large stretch of farmland.  Mitee denied that 
youths prevented Shell from gaining access to the site. A 
MOSOP representative told us the spillage started on Sunday 
in at least two points. Presently, the pipeline has been 
capped and the fire put out.  The MOSOP representative stated 
that the clean up process has not begun, as Shell brought 
"grossly inadequate" equipment to the site. He said the 
communities remained calm during the spillage and fire, and 
never stopped Shell from attending to the situation.  MOSOP 
is also investigating the cause of the spill. 
 
MOSOP: SSS Manhandled Journalists 
--------------------------------- 
 
5.  (SBU)  The MOSOP representative also stated that on 12 
October, while he and two MOSOP colleagues were at the site, 
they were detained by State Security Service (SSS) for 5 
hours.  The MOSOP officials said that they were not harmed, 
but that three journalists who were also arrested had their 
cameras seized and were "severely manhandled". 
 
Shell: "Willing to Talk" to Pressure Groups 
-------------------------------------------- 
 
6.  (SBU)  The Shell External Relations Director indicted 
that Shell regards MOSOP as one of a variety of "pressure 
groups."  He indicated Shell's willingness to talk to such 
community groups, but that the company does not view 
discussions with them as a substitute for discussions with 
competent local and state government authorities.  He also 
stated that Shell would be responding to what the company 
regarded as inaccurate statements by MOSOP in the press. 
 
7.  (C) Comment:  The leak and fire come at a very 
inopportune moment.  The recent violence around Port Harcourt 
and the nationwide labor strike have tensions high and have 
generated skittishness in the international market.  The time 
of the incident might be coincidental.  However, it could 
also be an attempt by one of the militia groups to gain 
leverage and take action  in talks with the Government by 
reminding Abuja that they have the capacity to realize their 
threats against production. 
 
BROWNE