Brown to Hold Nigerian Oil Summit

Oil production collapses in Nigeria amid escalating violence against Western oil interests and workers
The collapse of oil production in Nigeria amid escalating violence against Western oil interests and workers has prompted Gordon Brown to hold an emergency meeting with Nigerian president Umaru Yar'Adua.

Meeting this month in London, the Prime Minister will attempt to gain assurances from Yar'Adua, elected last year, that he is taking steps to ensure an increase in oil production.

Last month Nigeria's output fell to 1.5 million barrels a day - its lowest for 20 years. A series of violent raids by rebels has meant the country is producing 1 million barrels a day below its capacity. This is contributing to surging oil prices, which closed last Friday at $145 per barrel.

There is growing alarm among oil executives at the lack of security in the Delta and the failure of the Nigerian government to organize a strategy for investment in the oil industry. Sources accuse the government of being 'complacent' in allowing the rise of violence, which last month saw an armed raid on a deep-sea oil installation - the most brazen attack so far by the Movement for the Emancipation of the Niger Delta (Mend).

Officials say major offshore oil projects due to come on stream shortly should see production reach 4 million barrels a day by 2010, but others are skeptical.

© Guardian News & Media 2008
Published: 7/5/2008
 
Use the feedback form below to submit your comments.
Your Comments:
Your Name:
Use the form below to email this article to your friends.
Recipient Email Address:
 Separate multiple email addresses by ;
Your Name:
Your Email Address: