Shell Nigeria declares force majeure on Bonny Light - CNBC Africa

Shell Nigeria declares force majeure on Bonny Light

Western Africa

by Reuters 0

Shell Nigeria declares force majeure on Bonny Light crude liftings. Photo: Flickr.

Shell's Nigerian unit has declared force majeure for Bonny Light crude oil liftings due to a shutdown of a Niger Delta pipeline following a leak, a statement said on Friday.

The declaration comes just over a month after the company ended its most recent new force majeure on Bonny Light after repairing another a leak on the same pipeline. 

"SPDC declared force majeure on Bonny Light liftings effective 1000 hrs (Nigerian Time) today due to shutdown of the Nembe Creek Trunk Line (NCTL) by the pipeline operator, Aiteo, following a leak," Shell said in a statement.

The Shell Petroleum Development Company of Nigeria Ltd (SPDC) is Shell's local unit.

A spokeswoman said Bonny Light exports were continuing via the Trans Niger Pipeline, which had reopened after being closed since early June. Sources told Reuters the pipeline resumed pumping oil last week. Exports of 211,000 bpd were initially planned for August.

Bonny Light is the fourth Nigerian oil grade under force majeure as the country grapples with militant attacks that have hobbled its oil production and exports. Already, the country's largest export stream, Qua Iboe, is under force majeure as well as Forcados and Brass River.

Attacks throughout the Niger Delta have continued despite a resumption of cash payments to militants and government efforts at peace talks. [nL8N1AI5K0]

As a result, the country is missing more than 700,000 bpd of oil production. In addition to the grades under force majeure, a trader and port source said others, such as Escravos, were flowing at reduced rates due to attacks on pipelines and other infrastructure.