Federal Government Strengthens Military Force in Niger Delta

President Umaru Musa Yar'Adua just approved the strengthening of the Joint Task Force (JTF) assigned to help with security in the Niger Delta, following the pipeline attacks this week. This boost comes after he had already approved the operation of the International Marine Force in the region. Part of the President's motivation to include international expertise is because of the militants believed access to heavy weaponry and funding.

As a result of recent attacks on Shells oil pipelines, there has been a loss of 169,000 barells per day (bpd). According to Shell spokesman Precious Okolobo, the loss was caused by an explosion that damaged the pipeline leading to the Bonny exports terminal over the weekend, as well as two more attacks on the Soku-Buguma and Buguma-Alakiri pipelines. The extent of the damage to the pipelines has not yet been determined, but immediate steps towards repair will begin one that has been done. The Bonny terminal, along with the Forcados east terminal are Shells most important assets in Nigeria.

All of this news, this comes at a bad time and adds to international tension, as there is currently a strike at a major Scottish oil Refinery. The combined bad news, as well as the weakness of the dollar pushed the price of oil up 57 cents to $118.05 on Tuesday. Shell has now reported that it might be unable to honor the contracts made for April and May because of the loss.

The perpetrators of these attacks, unfortunately continue to have global impact on the price of oil. The Movement for the Emancipation of the Niger Delta (MEND), claimed responsibility for the attacks on Monday.

Shell is responsible for half of Nigeria's daily oil output, which makes makes this a significant dent in Nigeria's oil industry for the time being. Securing this region is a top priority for the Nigerian Government, as problems in this region are having international ripple effects.