Shell extends force majeure on Nigeria Bonny exports
LONDON (MarketWatch) –Royal Dutch Shell PLC Friday said it has extended a force majeure until further notice on Nigerian Bonny oil exports after new problems were discovered during ongoing repair work that followed a militant attack late-July on its energy infrastructure.
“The company had worked hard to repair the pipeline and bring back production only to discover more leaks from the effects of the attack,” Shell said in a statement.
The force majeure, which legally protects Shell from not meeting contractual obligations due to factors outside its control, was put into place in late July and originally had been expected to end this month. Shell declined to say precisely what volumes are affected.
Militants attacked the Nembe Creek and Rumuekpe oil pipelines at the end of July, knocking out a chunk of production. Shell had put the amount of oil shut-in at 40,000 barrels a day, though some industry officials believed the number was higher.
Nembe Creek typically operates at around 130,000 barrels a day of capacity and feeds the Bonny oil export terminal, while capacity at Rumuekpe is around 100,000 barrels a day.
Nigerian Bonny supply is coveted by refiners for its low-sulfur quality that makes it relatively easy to refine.
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