Shell declares force majeure after Nembe pipeline attack

Shell declared force majeure on its export commitments at its Nigerian Bonny Light terminal after Nigerian militants damaged its Nembe oil trunk pipeline in the Niger Delta.

Uchenna Izundu
International Editor

LONDON, July 31 -- Royal Dutch Shell PLC declared force majeure on its export commitments at its Nigerian Bonny Light terminal after Nigerian militants damaged its Nembe oil trunk pipeline in the Niger Delta.

The Movement for the Emancipation of the Niger Delta (MEND) claimed responsibility for the attacks on two pipelines early on July 28 that forced Shell to shut in the line fed by two smaller lines.

According to Nigerian reports, the main pipeline transports 130,000 b/d of oil to export terminals.

The company did not say how much oil production is reduced or how long it would take to restore supplies. Its force majeure announcement spans July to September supply contracts, but it is unclear the volume of oil covered.

The loss is likely to exacerbate already high crude prices. Militants have so far cut Nigeria's output by almost a quarter to pressurize the federal government to increase the level of oil revenue given to their communities and reduce their poverty.

Contact Uchenna Izundu at uchennai@pennwell.com.

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