12 December 2012

Nigeria: Mobil Lifts Force Majeure On Qua Iboe Oil Exports

Mobil Producing Nigeria has lifted its force majeure on Qua Iboe crude exports, Bloomberg quoted the company's general manager, public and government affairs, Mr. Paul Arinze to have said.

The oil giant, on November 20, declared the force majeure on oil exports attributing it to the difficulty in meeting projected oil lifting, due to the repair work on a section of its pipeline affected in the November 9 oil release offshore Akwa Ibom.

The force majeure is a legal step that protects a company from liability when it cannot fulfill a contract for reasons beyond its control.

The US oil major operates two offshore oil blocks and a 960, 000 barrels per day crude export terminal, off the Akwa Ibom coastline. The company had shut down the affected facility to prevent damage to the environment.

Shell had on November 29, lifted its over one month force majeure on Bonny oil exports that will ease supply problems for Nigeria, Africa's largest oil producer, the SPDC said. French oil major, Total had on same day lifted its force majeure on gas shipment to the Nigerian Liquefied Natural Gas (NLNG), reported Bloomberg.

Bonny Light and Forcados are two of Nigeria's most important oil grades and in October they represented exports of 427,000 bpd.

Shell had in September, shut its Bonny pipeline and deferred 150,000 bpd after a third party vessel suspected to have been involved in crude theft caught fire. The Bomu-Bonny Trunkline conveys crude oil to Bonny Terminal. Shell had confirmed that flooding had affected its Bonny operations, while attacks on the pipelines of its local subsidiary caused the majority of its problems.

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