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Nigeria instability bad for oil industry

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Published: Dec. 21, 2006 at 10:34 AM
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WASHINGTON, Dec. 21 (UPI) -- Continued instability in Nigeria, including the attack Thursday on a French oil installation, raises questions about supplies from Africa's No. 1 producer.

Radio France Internationale reported that several armed men attacked facilities belonging to France's Total in the Rivers State in the country's south, killing three policemen. Attacks against Western installations in the oil-rich Niger Delta by the Movement for the Emancipation of the Niger Delta have increased this year and cut production by, according to some estimates, as much as 50 percent.

Adding to the instability is the political uncertainty that surrounds the bitter split between President Olusegun Obasanjo and Vice President Atiku Abubakar. Each man has accused the other of corruption.

"This worsening political rift between Obasanjo and Abubakar carries great implications for Africa's most populous nation and largest oil producer -- which also happen to supply the U.S. with about 8 percent of its daily crude oil," writes Sebastian Spio-Garbrah, analyst, Middle East and Africa, for the Washington-based Eurasia Group.

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