Nigerian Oil Pipeline 'Attacked'; Chevron Halts Production

June 21, 2008 1:39 p.m. EST

Warri, Nigeria (AHN) - Nigerian militants have reportedly blown up one of Chevron Corp.'s pipelines in its Nigerian unit, halting onshore oil production.

The U.S. corporation Chevron said on Saturday that the breach on its Escravos oilfields is a suspected act of sabotage.

The company had to reportedly stop the production of about 120,000 barrels per day, which is around 6.6 percent of Nigeria's total daily crude output.

Nigeria, which is considered as Africa's top producer, may suffer from the current situation as crude is one of its main exports.

The country produced an average 2.13 million barrels per day in the year 2007 and it was listed as number 13 among biggest producer in the world.

"The company is currently assessing the situation," the San Ramon, California-based company said in an e-mailed statement today.

"The joint venture's onshore production has been shut in to protect the environment. At this stage, we are assessing the situation and cannot provide specific production figures."

The reports said that the attack was carried out on one of the pipelines near the Abiteye-Olero crude oil line near Chevron's Escravos terminal.

The local authorities said no group has taken the responsibility for the latest attack and estimated that the attack have been carried out by militants using dynamites and rocket-propelled grenades.