Violent unrest in the oil-rich Niger-Delta has halted 40 per cent of the nation’s oil production, Presidential adviser on Petroleum and Energy, Dr Rilwanu Lukman has announced.

Speaking while fielding questions at the business luncheon of the Franco-Nigeria chamber of commerce yesterday in Abuja, Lukman said the loss from the crisis stood at 800,000 barrels per day of exportable crude.

He described the loss as enormous and that it is impacting negatively on the economy even as the crisis was also giving the nation a bad image internationally.

"It is unfortunate that an ethnic difference has continued to hamper meaningful development of the energy sector, especially in the Niger-Delta region", he lamented.

He said the unrest has forced the Royal/Dutch Shell Company to halt 320,000 barrels per day of its production after Chevron-Texaco closed its export terminal last week, while TotalFinaElf pulled out of an oil storage facility after it was attacked.

The Presidential aide announced that "active discussions" were going-on in a bid to restore normalcy to the region.

Lukman said a total shut down of the nation’s exports could lead to a quick rally in oil prices.

Meanwhile, the unrest has forced the shutting down of the 125,000 barrels per day Warri refinery and petrochemicals as well as 110,000 barrels per day Kaduna refinery and petrochemicals, oil industry sources have disclosed.

The two refineries were closed due to stoppage of crude oil pumping from the crude oil terminal at Escravos after it was attacked by rampaging youths.