US embassy cable - 05LAGOS19

UNCLAS LAGOS 000019 
 
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 USAID FOR GWEYNAND AND SLAWAETZ 
STATE PASS EX-IM FOR JRICHTER 
STATE PASS OPIC FOR CDUFFY 
STATE PASS TDA FOR BTERNET 
 
E.O. 12958: N/A 
TAGS: EPET, EINV, CASC, MOPS, NI 
SUBJECT: SHELL, CHEVRON RE-STARTING PRODUCTION IN KULA AREA 
 
REF: A) LAGOS 2446 B) LAGOS 2456 C) LAGOS 2560 D) LAGOS 2588 
 
Shell to Re-Start Production in Kula Region 
-------------------------------------------- 
 
 
 
1.  Shell External Relations Director Don Boham confirmed to 
us on 5 January that Shell has reached an accord with the 
community in the Kula area to allow about 114,00 barrels/day 
of oil production, halted in early December 2004, to re- 
start.  Shell remains in negotiations with the community 
concerning a Memorandum of Understanding (MOU). However, 
Boham noted that the community had agreed to allow 
production to begin before concluding an agreement, "as a 
gesture of goodwill."  He noted that Shell is now conducting 
process checks on its facilities in Ekulama and Egbema, with 
an eye towards re-starting production within the week. 
 
Chevron Already Pumping Again in Kula 
--------------------------------------- 
 
2.  Chevron Texaco (CT) General Manager for Public and 
Government Affairs Femi Odumago confirmed CT has re-started 
production at its Robert-kiri flow station, while continuing 
to negotiate an MOU with the community that disrupted 
operations at the station in early December.  Chevron had 
reported between 10,000 and 20,000 barrels of day of 
production had been halted due to this occupation and 
detention of its workers. 
 
BROWNE