Connect with us

Business

More trouble for Nigeria as Shell declares Force Majeure on oil exports

Published

on

Shell Petroleum Development Company of Nigeria (SPDC) Limited, has declared force majeure on exports of Nigerian Forcados crude oil after the obstruction of a tanker path by a malfunctioning barge.

The latest halt adds to Nigeria’s ongoing production issues that have affected the country’s sales.

A statement from the firm, according to Reuters, said the unfortunate incident left the company with no other option than to declare a force majeure on exports of Nigerian Forcados crude oil.

Force majeure refers to a clause in contracts that allows both parties to walk out of the contract when an extraordinary event or circumstance beyond the control of the parties happens.

READ ALSO: Total Energies appoints Shell’s Samba Seye amid rising liabilities

However, SPDC stated that efforts were ongoing to lift the force majeure to resume crude oil lifting from the terminal.

It is believed that at least over 200,000 barrels of oil passes through the terminal currently blocked.

Nigeria has the capacity to produce around 2.2 million – 2.3 million b/d of crude and condensate, but production difficulties has seen Nigeria average 1.5mbpd according to OPEC November data.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations