A Review of the Nigerian Energy Industry

Crude oil exports suffer setback as Shell shuts Forcados terminal

Shell16 March 2014, Lagos – Nigeria’s export of crude oil has suffered a major setback as Shell Nigeria shut down the 400,000 barrels per day capacity Forcados export terminal in Delta State, following a leak on a pipeline.

This is coming as Total Exploration and Production (E&P) Nigeria Limited, the operator of the joint venture between the Nigerian National Petroleum Corporation (NNPC) and Total has acknowledged receipt of a notice of non-compliance with the Nigerian Content Act, issued by the Nigerian Content Development and Monitoring Board (NCDMB) against Hyundai Heavy Industries (HHI) a contractor on the Ofon II project.

But the French oil major has however, denied that the NCDMB at any time, made a request or issued an instruction that the Ofon II project be shut down.

Shell Nigeria and other third parties export crude oil from the Western Niger Delta through the terminal, which was once shut down on October 19, 2012, due to flooding and damage to the supply pipelines.
However, the company resumed loadings at the terminal on November 21, 2012 and also lifted the force majeure declared on exports of Forcados grade of crude oil.


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