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Wednesday, 09 May 2007

JOURNAL: MEND expands in Nigeria

"We are moving on to other oil firms" MEND spokesman.

That "other firm" is Italy's AGIP. In addition to attacks that shut down ~250,000 barrels a day (844,000 barrels a day total) earlier this week, MEND attacked the power supply to Agip's Brass city terminal today. The terminal was shut down. This is good example of an indirect approach to systems disruption used so successfully in Iraq (see BNW for exactly how this method of warfare is developing). It adds another 100,000 barrels of lost production. The guerrillas are closing in on 1,000,000 barrels of disrupted capacity. The loss of this capacity is already causing internal shortages of fuel in Nigeria and will likely result in substantial price hikes (from the heavily subsidized price). With this level of disruption, the idea of a shadow OPEC, where guerrilla groups have more power over pricing than Saudi Arabia, isn't that remote.

UPDATE: 4 American expats were kidnapped from a barge laying pipelines for Chevron today.

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Comments

Dear Sir,

I'm wondering if you would know (or have a guess) as to why and how MEND became so strong so quickly? I know they are secretive, but there were other groups prior to MEND and some groups continue. But it seems MEND is very powerful in comparison. Do you have any ideas as to why or know where I can find that out? I can't find a MEND official website. I assume they don't have one. Thanks for any suggestions and feedback. Based on your expertise, I'm hoping you will have some ideas.

CO

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