Youths sabotage onshore gas pipeline and abduct workers in Nigeria

Youths in Nigeria’s southern oil patch sabotaged the onshore Escravos- Lagos gas pipeline and abducted two workers, threatening a three-month truce that has led to tentative peace in the restive Niger Delta region. The only remaining source of gas supply to the thermal power plants across the country remains in failed portions of the pipeline. Repairs on the damaged parts have been suspended after the attack.

The Nigerian Gas Company-operated pipeline, which has a design capacity of 600,000 Mcf/day, had been expected to supply an additional 200,000 Mcf/day of gas for the Power Holding Company’s thermal stations and the pipeline sabotage threatens the government’s plan to raise power supply to 6,000 MW by the end of December.

The country’s most armed group, the Movement for the Emancipation of the Niger Delta, declared an indefinite ceasefire on October 25 to allow talks to go ahead with the government. But activists say the plan does not address any of the militants’ key demands and fear they could return to the creeks and resume attacks if they do not quickly find work.

Saudi Aramco CEO: Will Try to Help Stabilize Oil Prices

Saudi Arabian Oil Co., or Saudi Aramco, will do its part to keep oil prices from rising excessively and thus damaging a nascent global economic recovery, Chief Executive Khalid Al Falih said Wednesday.

Al Falih told reporters in Seoul he expects the refining industry to remain weak into next year, although signs of a recovery are appearing, according to a statement issued by S-Oil Corp., in which Saudi Aramco has a 35% stake.

The chief executive of Saudi Arabia's state oil company is in Seoul to discuss its shipments to South Korea.

While declining to provide a forecast for oil prices next year, he said large oil companies like Saudi Aramco need to have enough spare capacity for global oil prices to stabilize at an "appropriate" level.

Saudi Aramco recently completed the expansion of its output capacity to 12 million barrels a day, which will help stabilize oil prices, he added.

Qatar's oil minister said early this month the Organization of Petroleum Exporting Countries will keep output quotas unchanged at its Dec. 22 meeting in Angola, despite fears that Dubai's debt crisis could weigh on the global recovery.

Al Falih said the Dubai crisis won't affect Saudi Arabia, as the country's financial and property markets are "strong."

He added the crisis won't spread globally because Dubai is "seriously" trying to solve the debt problem.

Dubai World, the city-state's largest corporate entity, last week asked creditors for a six-month standstill on debt repayments, sending shock waves through global markets.

Saudi Aramco may increase crude oil sales volumes to South Korean refiners such as SK Energy Co. and GS Caltex Corp. to help ensure a stable supply, Al Falih said, according to S-Oil.

Saudi Aramco is also considering selling crude to Hyundai Oilbank Corp., which isn't currently a client, he added.

Hyundai is currently receiving crude oil mainly from the United Arab Emirates' state-owned Abu Dhabi National Oil Co., or Adnoc.

"While there are worthy aspirations for the development of renewable and alternative sources of energy in the future, Korea, its economy and its society will continue to rely upon petroleum for decades to come," Al Falih said during a speech at Seoul National University.

Saudi Aramco provides over 30% of South Korea's crude oil needs, making the company the largest single source of imported energy for the country.