Shell Lifts Force Majeure on Gas Supply to Nigeria LNG

20 Nov 2012

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Royal Dutch Shell Plc has lifted its force majeure on gas supplies to Nigeria Liquefied Natural Gas, Dow Jones Newswires quoted unnamed company spokesman to have said on Friday.

The force majeure was lifted on November 8, the spokesman said, after being put in place in early October because of a fire caused by oil theft on the Bomu-Bonny trunkline that hampered supply to Nigeria LNG.

A force majeure on Shell's exports of Bonny Light and Forcados crude oil, declared later in October, remained in place, the spokesman added. Supply of Bonny Light was also affected by the fire on the Bomu-Bonny trunkline, while other incidents of oil theft and severe flooding in the Niger Delta dented supply of both Bonny Light and Forcados crude in the last month. The spokesman did not disclose when this force majeure will be lifted.

A force majeure is declared when a company is unable to fulfill its contractual obligations to deliver the crude due to circumstances beyond its control.

Shell recently announced its plan to lift a force majeure on exports of Forcados and Bonny Light crude oil grades by the end of November.
"We are hopeful it will be lifted by the end of November on both the export terminals," Reuters had quoted Shell’s vice president for production and exploration in sub-Saharan Africa, Ian Craig to have said.

The Shell Petroleum Development Company (SPDC) had declared a force majeure on exports of Forcados and Bonny Light crude oil grades owing to a recent fire on the Bomu-Bonny Trunkline, the damage to the pipeline and flooding that affected its Bonny operations.

"The problem that we are having is these repeated incidents. So you fix one, you go for a period and then you have another one. I'm pretty sure we'll get out of this one quickly, the difficulty is how long before the next incident," the Shell official said on the sidelines of an African oil conference organised by Global Pacific & Partners.

Shell had in September, shut its Bonny pipeline and deferred 150,000 bpd after a third party vessel suspected to have been involved in crude theft caught fire. The Bomu-Bonny Trunkline conveys crude oil to Bonny Terminal.

Shell had confirmed that flooding had affected its Bonny operations, while attacks on the pipelines of its local subsidiary caused the majority of its problems.

Tags: Business, Nigeria, Featured, Shell, Gas Supply, LNG

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