Shell Petroleum Development Company (SPDC) Nigeria Limited has issued notice to Nigeria crude oil off takers that it would no longer guarantee export of the country’s flagship crude grade, the Bonny Light following shut down of key export pipelines.
The company stated that the while a new pipeline leak was dictated on one of the pipelines, the other was also shut down to remove crude siphoning valves installed on the export pipeline by thieves that run illegal export rings and illegal refineries in the Niger Delta.
In a statement yesterday, SPDC which is one of the local affiliates of Royal Dutch Shell that operates the country’s biggest exploration and production joint venture with the Nigerian National Petroleum Corporation declared force majeur on Bonny Light crude oil lifted from the operated Bonny Terminal in the coasts of Niger Delta.
Local spokesman, Mr. Precious Okolobo, confirmed the export suspension notice in a phone call but declined to give the volume of export cut backs, stating that the com- Fidelity Bank Plc has been adjudged as the best bank to work for in Nigeria. pany does not release daily production figures.
The traditional practice of concealing figures from the public kicks against the transparency movement across the globe and fuels suspicions of corruption in the country’s petroleum industry. A statement from the company however stated that SPDC JV declared force majeure on Bonny Light exports effective August 27, 2015 following the shutdown of both the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL).
It explained that a leak was reported on the Trans-Niger Pipeline (TNP) at Oloma in Rivers State, while the Nembe Creek Trunk Line (NCTL) is shut down for the removal of crude theft points. “SPDC is working to repair and reopen the two lines as quickly as possible.”
Declaration of force majeurs notify trading companies that have lifting contracts with either Shell, Total, Agip or NNPC on the joint venture that the operator has encountered a hitch beyond its control which could also affect scheduled export offtakes from the facilities of the company.