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Uncertainty persists over reopening of Forcados oil terminal

Punch: Uncertainty persists over reopening of Forcados oil terminal

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2 October 2016

More than seven months after it was shut down, the Forcados export terminal remains offline, with the operator, Shell Petroleum Development Corporation, saying it cannot tell when it will be reopened.

September 21, 2016 marked exactly seven months that Shell declared force majeure on the export of Forcados, one of Nigeria’s largest crude oil grades.

The force majeure, a legal clause that allows it to stop shipments without breaching contracts, came a week after the Forcados export line was attacked by militants in the Niger Delta.

The militants blew up a subsea pipeline feeding the terminal, knocking out at least 250,000 barrels per day of the nation’s oil exports.

The country and oil companies that depend on the terminal for exports of their output have taken serious beating since then as their revenues woes have worsened amid persistent low crude prices.

It is still uncertain when the Forcados pipeline will come back on stream as repairs have yet to be concluded.


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