Nigeria: Shell Threatens to Invoke Force Majeure

Muhammad Bello

20 August 2010

Port Harcourt — The Shell Petroleum Company has reiterated its intention to invoke force majeure in the Niger Delta region as a result of the recent destruction of two of its pipelines in Cawthorne Channel, Rivers State.

Precious Okolobo, the company’s spokesperson, warned that the company may not meet its contractual obligations on the Bonny Light crude.

“The force majeure we declared is effective from August 16. By this, it means that the company is invoking the legal clause that frees it from its obligations due to events beyond its control. The crude deferment followed attacks on and crude oil theft from our Cawthorne Channel in Eastern Niger Delta”, he added.

Over the weekend, He lamented that there were three separate attacks on its pipelines between August 1 and August 12, forcing the company to halt production.

Shell, Nigeria’s biggest operator in the oil sector, produced an average of 629,000 barrels per day last year as against 850,000 barrels in 2008.

AllAfrica – All the Time

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