Nigeria is to lose about $1.75 billion (about N280 billion) due to Shell Petroleum Development Nigeria’s declaration of ‘Force Majeure‘ on its Bonny Light exports between August 23 and end of October this year.

A statement issued by Tony Okonedo, the Corporate Affairs Manager of the Company in Lagos, said that the declaration of Force Majeure (suspension) was due to production deferment from several pipeline incidents in Eastern operations of the Niger Delta.

According to him, in one instance, SPDC recorded six separate oil spill incidents on the Okordia – Rumuekpe trunk line at Ikarama in Bayelsa, between August 2 and August 15,  from hacksaw cuts by unknown persons. He further said that on August 21, another three hacksaw cuts were reported on the nearby Adibawa delivery line.

Okonedo asserted that some production is shut-in while the SPDC repairs the line. Experts say the development would affect the country’s crude oil daily production.

News Agency of Nigeria (NAN) reports that Shell produces 300,000 barrels per day on its Bonny Light.