A Review of the Nigerian Energy Industry

Shell shuts key Nigerian pipeline for repairs

Shell logo12 June 2014, Lagos – Anglo-Dutch oil group Shell’s Nigerian subsidiary on Thursday declared “force majeure” on exports from a key pipeline in the south of the country because of damage caused by bad weather.

The Shell Petroleum Development Company of Nigeria Ltd (SDPC) said daily production of 40,000 barrels of crude was suspended from 1100 GMT until repairs on the offshore platform in the EA field was complete.

The damage to the platform had prompted the shutdown of the facility near the city of Warri, in the Niger Delta region, it added.

“Force majeure” is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.

Nigeria is Africa’s largest oil producer, accounting for about two million barrels of crude per day, according to the International Energy Agency.

Oil also accounts for more than 90 percent of Nigeria’s foreign exchange earnings.


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