Lagos - With the declaration of force majeure on Bonny Light exports by Shell Petroleum Development Company of Nigeria Limited, about 400,000 barrels per day of Nigeria’s production has now been stopped.
According to Punch, Force majeure is a legal clause that allows an oil firm to stop shipments without breaching contracts.
The oil major said in a statement signed by its spokesperson, Mr. Bamidele Odugbesan, on Wednesday that the force majeure took effect from Tuesday, May 10, 2016.
It said the decision came as a result of a leak that led to the closure of the Nembe Creek Trunk line for repairs by the operator, Aiteo Eastern E & P Company Limited.
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.
According to Premium Times, the Minister of State for Petroleum, Ibe Kachikwu, announced policy changes in Abuja on Wednesday afternoon.
“In order to increase and stabilise the supply of the product, any Nigerian entity is now free to import the product, subject to existing quality specifications and other guidelines issued by Regulatory Agencies,” Mr. Kachikwu said.
- News24 Nigeria