June 15, 2009

Shell extends Nigeria forces majeure

SHELL has said its   Nigerian joint venture had extended forces majeure on Bonny Light and Forcados crude to include oil exports for June.

A Shell spokesman from The Hague told Reuters the extension came following a revision to a pipeline repair schedule due to the security situation in the area.

The move protects Shell from lawsuits for not meeting its deliveries due to actions beyond the company’s control. It was originally set up to cover Forcados exports until the end of April but then extended for the month of May. In addition, the company was forced to set up a force majeure for its Bonny Light exports April 12 after a manifold on the Trans-Niger pipeline caught fire same day 12. This was due to expire end of May but has also been extended to the end of June.

The company has been at the receiving end of militancy-orchestrated violence in the Niger-Delta with a resultant shut-in of over 600,000 barrels per day of the joint venture operated by its subsidiary, Shell Petroleum Development Company on behalf of the Nigeria National Petroleum Corporation, NNPC.