2nd UPDATE: Shell Says Restarted Nigeria's Soku Gas Plant Sun

The Shell Petroleum Development Co. restarted the Soku gas and condensate plant in Nigeria on March 29 after a shutdown of several months to repair pipeline damage caused by thieves, a spokesman for Royal Dutch Shell PLC (RDSB.LN) said Wednesday.

The plant is not yet producing at full capacity, but production is in the process of ramping up, he said.

"We removed 170 illegal connections from the condensate pipeline," that were being used for theft and have increased security in the area, the spokesman said.

The company is also cleaning up environmental damage caused by the condensate theft, he said. Photos previously seen by Dow Jones Newswires showed considerable environmental damage, with green scrubland around the plant's perimeter fence turned black by condensate leaks.

Before the shutdown in November Soku was supply 1.1 billion cubic feet of gas a day to the Nigerian Liquefied Natural Gas plant and 30,000 barrels a day of condensate to an export terminal.

Production has resumed at the NLNG plant after the resumption of supplies from Shell Petroleum Development Co.'s Soku gas plant, but the force majeure on LNG deliveries hasn't been lifted, a spokesman for NLNG said Wednesday.

"(The) Soku gas plant is currently providing gas at lower rates than its maximal capacity and pre-force majeure levels," he said in an e-mail. The force majeure on deliveries from the plant remains in place "pending the time SPDC clears all the remaining operational and other relevant issues," he said.

Oil production operations in Nigeria have suffered continued disruptions from damage caused to pipelines and other facilities either by illegal connections made to steal oil or deliberate sabotage by militants. As much as 100,000 barrels a day may be stolen in the country, the Nigerian government has estimated.

SPDC and NLNG are joint ventures between Shell, Nigerian National Petroleum Co., Eni SpA (E) and Total SA (TOT).

Company Web site: http://www.shell.com

-By James Herron, Dow Jones Newswires; [phone]; [e-mail]