Royal Dutch Shell to warn it may not be able to meet contractual obligations on shipments of crude from the Niger Delta

Nigeria’s army said on Monday itwould continue to fight criminal gangs in the oil-producing Niger Delta, underlining the fragility of a ceasefire declared by the region’s main militant group.The Movement for the Emancipation of the Niger Delta (MEND)declared a temporary ceasefire on Sunday after a week of attackson oil platforms, pipelines, flow stations and gas plants in theheartland of Africa’s biggest oil and gas industry.The six days of violence cut Nigeria’s oil output by at least 150,000 barrels per day and forced Royal Dutch Shell(RDSa.L: Quote, Profile, Research, Stock Buzz) to warn it may not be able to meet contractual obligations on shipments of crude from the country.The army welcomed the ceasefire announcement but said thatits strategy of fighting a network of criminal gangs involved incrude oil theft and kidnappings for ransom in the Niger Deltaremained unchanged.“We are not at war, so the issue of a ceasefire does notarise,” said Brigadier-General Mohammed Yusuf, spokesman forNigeria’s defence headquarters.
“If the restive youths are actually ready to lay down theirarms, then we will change our tactics. If there is no crime,then we will change our tactics. All we want is peace for thedevelopment of the area,” he said.Security experts say a loose coalition of various armedgroups operate under the MEND franchise in the anarchic delta,where foreign oil firms including Shell, Chevron (CVX.N: Quote, Profile, Research, Stock Buzz), Total(TOTF.PA: Quote, Profile, Research, Stock Buzz) and Agip (ENI.MI: Quote, Profile, Research, Stock Buzz) have interests.