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Shell declares force majeure on Bonny Light exports

By on August 29, 2015

Barely a week after it resumed gas supplies to the Nigeria LNG Limited from the Eastern Gas Gathering System, Shell Petroleum Development Company has declared force majeure on Bonny Light crude oil exports.

Bonny Light is one of Nigeria’s main export grades.

The oil major said in a statement on Thursday that the force majeure, which followed the shutdown of both the Trans Niger Pipeline and Nembe Creek Trunkline, was effective August 27, 2015.

The Manager, Corporate Media Relations of the SPDC, Mr. Precious Okolobo, said, “A leak was reported on the TNP at Oloma in Rivers State, while the NCTL is shut down for the removal of crude theft points. The SPDC is working to repair and reopen the two lines as quickly as possible.”

The Trans Niger Pipeline transports about 180,000 barrels of crude oil per day to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure critical for continued domestic power generation at the Afam VI power plant and liquefied gas exports, Shell said in a statement on its website.

The TNP was shut in May this year, leading to the declaration of force majeure on Nigeria’s Forcados crude oil stream.

The force majeure clause is a standard clause in most contracts and it includes events such as natural disasters, wars and other occurrences not within the power or control of the executing party, which makes the implementation of the contract impossible.

Shell had on August 21 said it had lifted the force majeure on gas supplies to the Nigeria LNG Limited from the EGGS-1, following the repair of a sabotaged leak on the line.

 

[Punch]