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    Shell Nigeria Reinstates FM at Bonny Light

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Summary

Shell declared force majeure (FM) August 12 at its Bonny Light export terminal in Nigeria, just five weeks after the Niger Delta oil...

by: Mark Smedley

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Shell Nigeria Reinstates FM at Bonny Light

Shell declared force majeure (FM) August 12 at its Bonny Light export terminal in Nigeria, just five weeks after the Niger Delta oil export facility resumed operations following an earlier two-month shutdown

A spokesman of Shell Petroleum Development Company of Nigeria (SPDC) said: “SPDC declared force majeure on Bonny Light liftings effective 10am Nigerian time today, August 12, 2016, due to shutdown of the Nembe Creek Trunk Line (NCTL) by the pipeline operator, Aiteo following a leak.”

Four days ago on August 8, Shell declared FM on the gas pipeline system through which it supplies the bulk of its gas to Nigeria LNG. Whereas on that occasion it said the cause was being investigated, for this Bonny Light FM it gave neither the cause of the leak nor whether it would be investigated.

It now means that both Shell-operated crude oil export terminals in the country (Forcados and Bonny Light) are again out of action, but this time the principal gas pipeline system by which it feeds most Shell gas to the Nigeria LNG export facility is simultaneously off-line owing to FM.

Many shutdowns, including those leading to FMs, over the past six months have been attributed to militant action to damage pipeline infrastructure. The reduction in gas supplies has severely impacted both Nigeria's power generation and gas exports to neighbouring Ghana.

A 30-day truce, reported to have included the Niger Delta Avengers (NDA) despite their claims to the contrary, broke down earlier this summer.

 

Mark Smedley