Oil & Gas
Shell declares force majeure on Bonny light oil
March 6, 2013 | 9:43 am| | | Start Conversation
Shell Petroleum Development Company declared force majeure on the Bonny Light crude oil grade on Tuesday due to a leak on a pipeline, a day after warning it may need to close the line altogether because of oil theft.
SPDC declared the force majeure on the Bonny Light off-take programme following the shutdown of Nembe Creek Trunkline after a leak was observed on Sunday, Shell said in a statement, according to Reuters.
On Monday, Shell’s country head, Mutiu Sunmonu, warned that it may be forced to completely shut down the 150,000 barrel per day Nembe Creek pipeline because of “unprecedented” levels of theft.
SPDC is a joint venture with the NNPC holding 55 percent, Shell 30 percent, Total 10 percent and Eni 5 percent. Shell operates production.
“There has been a recent upsurge in crude theft activities on NCTL, resulting in frequent production shutdown and massive oil spills blighting the environment,” the statement said.
Big Read |