Shell Nigeria declares force majeure, shuts 600,000bpd export pipeline

August 15, 2016 | Nigeria, Terminals & Storage

Lagos, Nigeria |  – Nigeria’s crude oil exports is again facing a fresh threat as Shell Petroleum Development Company of Nigeria, a subsidiary of Royal Dutch Shell plc on Friday declared force majeure on export of Bonny Light, Nigeria’s crude oil grade, the second time in three months.

This is coming four days after the oil supermajor declared force majeure on gas supply to the Nigeria LNG’s export facility on Bonny Island following a leak on the Eastern Gas Gathering System pipeline through which Shell supplies the bulk of its gas to NLNG.

Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.

The Media Relations Manager, SPDC, Mr. Precious Okolobo, told our Lagos Bureau that the declaration of the force majeure on Bonny Light was as a result of the shutdown of the Nembe Creek Trunk Line by the pipeline operator, Aiteo following a leak.

Bonny Light is the latest of the nation’s crude oil grades under force majeure. The largest export stream, Qua Iboe, Forcados and Brass River are still under force majeure.

Nigeria has continued to grapple with resurgent militant attacks that have hobbled its oil production and exports, further worsening the massive revenue woes facing the Buhari government.

With the declaration of force majeure on Bonny light exports, some of Nigeria’s production may have been shut in.

The 100-km NCT feeds the Bonny export terminal, inaugurated in 2010, has a capacity of 600,000 bopd, according to Shell Nigeria’s information.