Shell Nigeria declares force majeure on oil export

LAGOS, Nigeria (AP) — Shell Nigeria declares “force majeure” on exports of Bonny Light Crude oil and blames oil thefts that have forced the closure of its major Trans-Niger Pipeline at least five times in three months.

Friday’s announcement gives Nigeria’s biggest oil exporter legal protection against contractual obligations.

Shell said it has repaired 189 crude theft points this year on the Trans-Niger Pipeline and a major trunkline that carry 300,000 barrels of oil daily.

A statement from managing director Mutiu Sunmonu called the increasing thefts a “dangerous development” that requires more concerted efforts by all parties including the government and communities in the restive Niger Delta.

Experts estimate Nigeria loses about 200,000 barrels a day, or 10 percent of production, with most going to international criminal gangs that sell it on world markets.

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s