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May 23, 2017

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Shell warns on exports after damage to two sabotaged pipelines in Nigeria

LAGOS -- Oil giant Shell on Tuesday warned it may not meet contractual obligations on exports from Nigeria after sabotage caused damage to two pipelines in the country's main oil-producing region.

Shell's Nigerian joint venture "has declared Force Majeure on Bonny Light exports for the remainder of August as well as September and October," the company said in a statement.

Force majeure is a legal term releasing a company from contractual obligations due to circumstances beyond their control. Bonny Light is a type of crude.

Shell has reported six oil spills this month on the Okordia-Rumuekpe trunk line at Ikarama in Bayelsa state, "all from hacksaw cuts by unknown persons."

"On Aug. 21, another three hacksaw cuts were reported on the nearby Adibawa delivery line," it said. "Some production is shut in while (Shell's joint venture) repairs the line."

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