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Shell declares force majeure in Nigeria after pipeline damage

Pubdate:2013-09-26 09:46 Source:Xinhua Click:

Royal Dutch Shell on Monday declared a force majeure on its Bonny Light exports in southern Nigeria after it observed leakages on its pipelines.

Some 150,000 barrels of oil and 500 million standard cubic feet of gas per day are deferred, Shell Petroleum Development Company of Nigeria Ltd (SPDC) spokesperson, Precious Okolobo, said in a statement reaching here.

The force majeure means that the oil giant might not be able to honor its export contracts due to an unexpected or uncontrollable event.

The company said it took the decision after it shut down the Trans Niger Pipeline (TNP) for repair of new crude oil theft leaks at Bodo West and Oloma areas.

The TNP has been repeatedly targeted and closed down five times since early July due to multiple leaks from crude theft connections, the oil company added.

Shell said it is working to repair and reopen the line as soon as possible.

The oil company recently expressed concerns over the increasing cases of organized theft of crude oil in the Niger Delta region of the country.

Shell has previously suggested that about 150,000 bpd of oil is lost to oil thieves and pipeline vandals.