Business
16 months after, Shell lifts force majeure on Forcados pipeline
What looks like a relief for the Nigerian economy has emerged, with the Royal Dutch Shell announcing that it has lifted force majeure on exports of crude oil from Forcados oil facility.
The facility has been shut down in the past 16 months, following militant attacks in February 2016.
A spokesman of Shell stated on Wednesday: “SPDC is grateful to various stakeholders, particularly the Nigerian Federal and Delta State governments, security agencies, NNPC and communities for their support in the repair of the three-damaged leaks on the pipeline”.
Force majeure is a legal declaration exempting oil operator from fulfilling a contract due to circumstances outside its control, and without paying any damages to the affected parties.
Read also: 28.8m Nigerians unemployed as at 2016 Q4 –NBS
Resumption of Forcados pipeline operations, which usually boosts Nigeria’s exports between 200,000-240,000 barrels per day (bpd), would see the country recording a total of about 1.8 million bpd export as from June 2017.
It would be recalled that the Organization of the Petroleum Exporting Countries (OPEC) extended exemption on Nigeria over the member-country’s production cut, pending when its export record is able to revert between 1.8 million to 2 million bpd.
Shell confirmed having issued a loading programme for June exports, which will further lift Nigerian planned exports from 1.52 milion bpd to 1.75 million bpd, taking it to the highest in 15-month.
Reports say that Nigeria is faster in returning to its production capacity, compared with Libya, both of whose disruption of their outputs, due to unrest and other factors, have seen them enjoy support of OPEC on how to recover from losses over the development.
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