Shell declares force majeure on Forcados exports

The Shell Petroleum Development Company of Nigeria Ltd (SPDC) operated Joint Venture declared force majeure on exports from Forcados Terminal in Delta State.

Precious Okolobo, Corporate Media Relations Manager, Shell Nigeria in a statement said that the decision was as a result of a leak on the Trans Forcados Pipeline (TFP), that has affected crude receipts into Forcados Terminal. The TFP is operated by the Nigerian Petroleum Development Company (NPDC.)

Shell had in July lifted the force majeure declared on exports of Forcados on May 5, following leaks on the pipeline.

This development, it was learnt, would potentially lead to a drop in power generation as it will affect gas supply to some power stations.

The pipeline is a crude oil facility, but the liquid condensate produced by some gas fields, together with gas, is normally evacuated through the pipeline.

Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo, said in a statement last night that the force majeure, which took effect from yesterday afternoon was due a leak on the TFP that has affected crude receipts into Forcados Terminal.

The pipeline, which belongs to the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), transports Forcados grade of crude oil to the Forcados export terminal.

Though Okolobo did not disclose the volume of crude oil that will be affected, the Forcados export terminal has a capacity to export over 400,000 barrels per day.

The facility is the main pipeline that transports crude oil for Shell and other third parties from the producing fields to the export terminal.

The closure of the pipeline in January due to sabotage had led to a drop in power generation by 1,500 megawatts as almost half of the country’s gas production was affected.

SEPLAT Petroleum Development Company, which is listed in both London and Nigeria; Pan Ocean Corporation and the NPDC also transport their crude oil through the pipeline.

The declaration of force majeure on Forcados exports is coming barely three weeks after Shell lifted the force majeure on Bonny Light exports following the repair and re-opening of the Trans Niger Pipeline (TNP) and Nembe Creek Trunkline (NCTL.)

The lifting of the force majeure came less than one week after the company lifted the force majeure it had declared on gas supplies to the Nigeria LNG plant in Bonny Island in Rivers State, following a leak on the Eastern Gas Gathering System (EGGS) caused by oil thieves, who had thought that the pipeline was used for crude oil.