NIGERIA: YOUTHS SHUT SHELL FLOW STATION

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