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