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Shell finds more problems in Nigeria

ABUJA, Nigeria, Aug. 26 (UPI) -- Shell declared force majeure on Nigerian oil exports after a series of oil spills, which critics say occurred when Shell pulled pipeline protection contracts.

Shell declared force majeure, meaning it is released from contractual obligations because of circumstances out of its control, through October. In a statement, the company said that after a series of spills it discovered hacksaw marks on a pipeline carrying crude oil through the Niger Delta.

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Independent, but unpublished, reports reviewed by The Guardian newspaper in London suggest the recent spills came after Shell pulled contracts for pipeline protection. Authorities in Nigeria said guards were pressing for higher wages from Shell before the company quickly withdrew the contract.

A Shell spokesman was quoted as saying from London there is nothing to suggest its contractors or staff damaged the pipeline.

"It does seem that the catalyst for the incidents in this case was the withdrawal of a contract," the spokesman added.

The United Nations estimated that at least 6,800 oil spills occurred in the area from 1976-2001. A report in Nigeria from the U.N. Environment Program was criticized, however, because it was backed by Shell.

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