Nigeria: Shell, Eni Announce Force Majeure On Key Nigerian Oil Flows
The developments could deal a blow on Nigeria, which has plans to export oil in the neighbourhood of 1.5 million bpd in March.
Shell Petroleum Development Company, the local unit of Royal Dutch Shell, on Monday said it declared force majeure on Bonny Light oil export programme beginning from March 3, citing a decline in flows to the export terminal.
On the same day, Italian energy giant Eni also declared the same measure on exports of Brass River crude oil, triggered by a pipeline explosion in Bayelsa State. Force majeure legally allows a company not to meet contractual obligations for reasons that are out of its control.
The twin occurrences is likely further pressure a market reeling from the weighty implications of Russian occupation of Ukraine by complicating supply woes.
The two Nigerian grades – Bonny Light and Brass River – were part of a shipment programme of 170,000 barrels of crude per day (bpd) for April even though they have seen a continuous for years, Bloomberg said, citing loading plans.
As of 2020, flows were proposed to be at 320,000 bpd.
Eni stated it has pared crude exports from Brass Export terminal by around 25,000 bpd, noting that the explosion was the second blast after an explosion on February 28 at its Obama flow station caused a drop in output of 5,000 bpd.
“Force majeure has been declared at Brass terminal, Bonny NLNG and Okpai Power Plant. “All wells connected to that pipeline were immediately shut in whilst river booms and containment barges were mobilized to reduce the impact of the spill,” Eni said in a statement.
Market observers are weighing the uncertainty around the fate of Russian oil following the country’s occupation of Ukraine, with a number of energy firms ending patronage of new cargoes from Moscow and some countries ordering embargo on importation of petroleum from Russia.
The latest developments could deal a blow on Nigeria, which has plans to export oil in the neighbourhood of 1.5 million bpd in March according to loading plans.
By Premium Times.
