The Shell Petroleum Development Company of Nigeria Limited has lifted the force majeure on Bonny Light exports following the repair and re-opening of the Trans Niger Pipeline and Nembe Creek Trunkline.
The TNP was repaired after a joint investigation visit found that a leak was caused by an illegal connection that failed, a statement from the company on Wednesday signed by its Corporate Media Relations Manager, Mr. Precious Okolobo, indicated.
A number of crude theft points were removed from the NCTL, the statement added. Barely a week after it resumed gas supplies to the Nigeria LNG Limited from the Eastern Gas Gathering System, the SPDC had declared force majeure on Bonny Light crude oil exports last week. Bonny Light is one of Nigeria’s main export grades.
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The oil major had said that the force majeure, which followed the shutdown of both the Trans Niger Pipeline and Nembe Creek Trunkline, was effective August 27, 2015.
The Trans Niger Pipeline transports about 180,000 barrels of crude oil per day to the Bonny Export Terminal and is part of the gas liquids evacuation infrastructure critical for continued domestic power generation at the Afam VI power plant and liquefied gas exports, according to a statement on Shell’s website.
The TNP was shut in May this year, leading to the declaration of force majeure on Nigeria’s Forcados crude oil stream.
The force majeure clause is a standard clause in most contracts and it includes events such as natural disasters, wars and other occurrences not within the power or control of the executing party, which makes the implementation of the contract impossible.
