Business

Shell declares force majeure on Forcados exports

Published

9 years ago

October 1, 2015

Following a leak in a pipeline system, the Shell Petroleum Development Company of Nigeria Limited (SPDC) operated Joint Venture has declared force majeure on exports from Forcados Terminal on Wednesday.
A statement issued by Shell’s Corporate Media Relations Officer, Precious Okolobo said the force majeure was declared following a leak on the Trans Forcados Pipeline (TFP) that has affected crude receipts into Forcados Terminal. The TFP is operated by the Nigerian Petroleum Development Company (NPDC).
The Trans Forcados pipeline has capacity to transport 150,000 barrels of oil per day. It transports NPDC’s oil and Seplat Petroleum Development Company’s gas of about 70,000 barrel daily as well as about 7.5 million standard cubic feet of gas per day. The development may affect gas supply to power plants.
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.

The SPDC had on September 2 this year 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 number of crude theft points were removed from the NCTL then.
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 domestic power generation at the Afam VI power plant and liquefied gas exports, according to a statement on Shell’s website.

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