Eni, the parent company of Nigerian Agip Oil Company (NAOC), declared a Force Majeure on Monday regarding expected oil output at its Brass terminal in Yenagoa.
The declaration means that the terminal will lose 25,000 barrels of crude oil and 13 million standard cubic metres of gas per day.
A Force Majeure is a legal clause in contracts that absolves firms from legal liabilities due to circumstances beyond their control.
Eni said in a statement that an incident which was caused by a blast, occurred on the Ogoda/Brass 24 oil line at Okparatubo in Nembe Local Government Area of Bayelsa, consequently causing a spill.
“All wells connected to that pipeline were immediately shut whilst river booms and containment barges were mobilised to reduce the impact of the spill.”
“Regulators for inspection visit and repair teams have also been activated. The Federal Government, Bayelsa, and security authorities were notified,’’ Eni stated.
According to the firm, the blast, which occurred a couple of days ago resulted from an attack on the facility.
Meanwhile, it was the second attack in three weeks, following a similar incident at Eni’s Obama flow station on Feb. 28.
The Obama incident resulted in a 5,000-barrel-per-day crude oil production shortfall.
“Force Majeure has been declared at the Brass terminal, Bonny NLNG, and Okpai Power Plant,’’ Eni emphasised.
However, the National Oil Spills Detection and Response Agency confirmed that Joint Investigative Visits on the two incidents had been conducted.
It said that field officers assigned to the visits had not filed their reports, however.