US embassy cable - 05LAGOS1107

UNCLAS LAGOS 001107 
 
SIPDIS 
 
STATE PASS DOE FOR DAS JBRODMAN AND CGAYE 
STATE PASS DOC KBURRESS 
STATE PASS TRANSPORTATION MARAD 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
STATE PASS EX-IM FOR JRICHTER AND KVRANICH 
STATE PASS OPIC FOR ZHAN AND JEDWARDS 
STATE PASS TDA FOR NCABOT AND BTERNET 
 
E.O. 12958: N/A 
TAGS: EPET, ELAB, KDEM, PGOV, NI 
SUBJECT: NIGERIA: YOUTHS SHUT SHELL FLOW STATION 
 
 
1. (U) The Billie, River State, flow station of oil giant 
Shell Petroleum Development Company (SPDC) was shut down by 
angry youths on July 6.  Press reports associated the 
youths' action with the National Political Reform 
Conference's refusal to grant greater control of oil and gas 
resources to states located in the Niger Delta region. 
owver, Sell Exernal Affairs Director, Don Boham 
disagreed, saying issues regarding outstanding community 
projects agreed to in a Memorandum of Understanding (MOU) 
signed by SPDC and the Billie Community were the root cause 
of the protest. 
 
2. (U) Boham confirmed that the flow station, which produces 
about 40,000 barrels of crude oil daily, was reopened on 
Thursday July 7, but later shut in again by the angry 
protesters. He stated no workers have been taken hostage, 
and there have been no threats to workers' lives or company 
property. Boham says negotiations are currently on-going 
between SPDC and community leaders. Meanwhile, the flow 
station remains closed. 
 
Howe