Shell’s Forcados pipeline to resume export in September

Four Gulf of Mexico oil platforms shut after Enchilada fire - Shell

Reports gathered has revealed that Royal Dutch Shell Plc’s Forcados pipeline will resume deliveries in September.

According to Kola Karim, Chief Executive Officer, Shoreline Group, the pipeline will restart export after the company declared its second force majeure in July.

“We are hearing Forcados is due to return at the middle of next month,” Karim said on Thursday.

Adding, Karim said, “It has been a tough situation for us the past months.”

The Forcados pipeline system is among oil infrastructure targeted by oil militants in the Niger Delta this year.

In February and July, Shell declared force majeure— a legal clause that allows it to stop shipments without breaching contracts — after militants blew up a line feeding the Forcados terminal, which typically exports about 200,000 barrels a day. Of that, Shoreline sends about 52,000 barrels a day.

As the world anticipates influx of crude oil from Nigeria after the Niger Delta Avengers declared ceasefire and readiness to dialogue with the Federal Government, major oils like Shell, Chevron and ExxonMobil have remained mum on their next line of actions.

Nigeria has lost more than 700,000 barrels of oil production per day because of attacks on pipelines and platforms by the Niger Delta Avengers.

The Avengers ceasefire and willingness to talk raises the prospect of a return of oil production if the attacks stop and companies can make repairs to damaged infrastructure.

But that outcome is far from assured, not least because the militants in the Niger Delta are not just one group and the Avengers do not speak for everyone.

Besides, since the Avengers ceasefire, other groups have sprang up and have claimed responsibility for fresh attacks on pipelines.

Although Karim’s statement offers hope for the Nigerian economy yet, no official statement has been released from any of the Oils, likewise, all attempts to get them to comment on the issue were met with brick wall.

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