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Shell suspends Bonny Light exports, declares force majeure


Shell declares force majeure

The Shell Petroleum Development Company of Nigeria Ltd has declared force majeure on exports of Bonny Light.

Force majeure is a standard clause found in construction and supply contracts that exempts the contracting parties from fulfilling their contractual obligations.

With this development, Shell has suspended its obligations as per exports of Bonny Light.

Bonny Light is Nigeria’s reference crude oil grade.

The oil major Shell’s declaration is contained in a statement on Wednesday signed by its spokesperson, Mr. Bamidele Odugbesan.

Mr. Odugbesan said the force majeure took effect by 12pm on Tuesday, May 10, 2016.

It said the decision came as a result of a leak that led to the closure of Nembe Creek Trunk line for repairs by the operator, Aiteo Eastern E & P Company Ltd.

Shell, however, did not disclose the cause of the leak in the statement.

Shell had in February declared force majeure on liftings from the Forcados export terminal, following the disruption in production caused by the spill on its subsea crude export pipeline.

Recently, a group named Niger Delta Avengers claimed responsibility for the attack on the Shell oil pipeline.

The pipeline shut down 250,000 barrels-per-day export terminal.


In the meantime, the Defence Headquarters (DHQ) has issued stern warning on the militants reminding them of the consequences of their actions.

The DHQ says it is not unaware of the emergence of a group in the Niger Delta region.

The new group has vowed to cripple economic activities through pipeline vandalism, oil theft and kidnap of expatriate workers in that region.

DHQ warns that it will not hesitate to deploy every available resource to deal decisively with any threats to economic lifeline of the nation.

It says: “The military will employ all available means and measures within its Rule of Engagement to crush any individual or group that engages in the destruction of strategic assets and facilities of the government in the Niger Delta or any other location.

“And they will stand to regret the consequences of their actions. 

“The whole world has seen what they are causing in terms of economic terrorism against the nation and would be treated as criminals in line with the laws of the land.

“The military and other security agencies would continue to emplace more proactive measures within the creeks and other places to fish out those responsible for the heinous crime.

“It will remain focused and assure oil companies and law abiding community members of their safety and protection of their sanctity.”

The DHQ, therefore, advices community leaders, traditional rulers and the general public to cooperate with the security agencies.

That in a bid to ensure the apprehension of the culprits for the interest of our great nation.

It says “no individual or group interest is above national interest of this country”

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