Industryweek 6403 Shell Declares Force Majeure Nigeria Crude Exports

Shell Declares Force Majeure on Nigeria Crude Exports

March 26, 2014
Anglo-Dutch oil giant Shell declares force majeure on crude oil exports from Nigeria as it struggles to repair a sabotaged pipeline.

LAGOS, Nigeria -- Anglo-Dutch oil giant Shell (IW 1000/1) said Wednesday it had declared force majeure on crude oil exports from Nigeria as it struggles to repair a sabotaged pipeline.

Force majeure is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.

Shell's subsidiary in Nigeria said the force majeure declaration was effective from Tuesday "due to ongoing repairs on the 48-inch crude export line at Forcados Terminal in the Western Niger Delta."

Shell said the subsea pipeline was shut when a leak was discovered on March 4, leading to suspension of crude oil exports through the terminal, which can produce up to 400,000 barrels of crude per day.

Shell has blamed repeated oil thefts and sabotage of key pipelines as the major cause of spills and pollution in the oil-producing region.

Crude oil theft is a major problem in Nigeria, with estimates that the country loses some $6 billion (4.3 billion euros) in revenue every year because of the practice.

Nigeria is Africa's largest oil producer, accounting for more than two million barrels per day.

Copyright Agence France-Presse, 2014

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