8 October 2012

Nigeria: Economy Loses N21 Billion as Shell Suspends LNG Export

Shell Petroleum Development Company of Nigeria has suspended loading of LNG from Nigeria's Liquefied Natural Gas (LNG) plant after last week's fire incident at Bomu-Bonny Trunk Line.

The company last week suspended the loading of about 150,000 barrels of crude oil per day because of the same incidence.

"Some 150,000 barrels of oil per day is deferred," a statement from the company said.

Nigeria has lost about N21 billion ($132 million) in the last eight days since the deferment last week.

Shell has declared force majeure on its gas deliveries. The force majeure took effect as of October 4.

"An attempt was made to steal crude oil from the Bomu-Bonny trunk line and offload it onto a waiting ship that led to a fire on the line and on the ship on Sunday," a Shell spokesman told Reuters.

Shell has a 25.6 percent stake in Nigeria LNG, NNPC 49 percent, Total 15 percent and Eni 10.4 percent.

International crude oil price has hovered at $110 per barrels for some weeks now.

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