Over 300,000 barrels shut- in, as Shell declares force majeure on Forcados

Over 300,000 barrels of crude oil and substantial volume of gas for domestic use have been shut –in as Shell Petroleum Development Company of Nigeria Limited (SPDC) has declared force majeure on Forcados crude liftings effective 1500hrs (Nigerian time) February 21 2016, this follows the disruption in production caused by the spill on the Forcados Terminal subsea crude export pipeline.

The Forcados terminal accounts for over 300,000 barrels of crude oil exported daily and is ranked among the biggest terminals in the country as it does not only serve Shell but Seplat and Nigeria Petroleum Development Company (NPDC).

The incident is also affecting gas supply to major power plants to the country.

Shell has however said it intensified efforts on containment and oil recovery from the February 14, 2016 spill, while also finalising repair plans.

Supported by industry group Clean Nigeria Associates (CNA) and other oil companies, SPDC has deployed specialised equipment to contain the spill. SPDC has also mobilised clean-up teams and contracted a specialised aircraft to join in the response. Production into the terminal and crude oil exports were stopped soon after the spill was discovered.

Diving teams which inspected the 48-inch diameter export pipeline reported extensive damage that is consistent with the application of external force. Following this incident, the SPDC Joint Venture is working with relevant government agencies to review the security situation around its critical assets in the Niger Delta.

Igo Weli, General Manager External Relations of SPDC, said: “This incident is regrettable but our response is comprehensive including multiple flights over the affected area to monitor the impact and deployment of clean-up experts from within and outside Nigeria. Oil recovery will continue while we finalise repair plans pending the conclusion of the ongoing Joint Investigation Visit (JIV) process. We appreciate the support of the communities, regulators and security agencies who are taking part in the investigation.” The attack on the terminal has led to an acute shortage of crude oil both for export and for local processing.

The Forcados terminal accounts for over 400,000 barrels of crude oil exported daily and is ranked among the biggest terminals in the country.

The major trunk line, the Forcados terminal crude oil export pipeline, in Burutu Local Government Area of Delta State, had been attacked by new Niger Delta militants under the aegis of the Niger Delta Avengers (NDA).

The attack on the terminal has led to an acute shortage of crude oil both for export and for local processing.

This is happening a few days after President Muhammadu Buhari issued an order that more troops should be deployed to the Niger Delta region to protect oil installations.

The group, in the statement titled: “Operation Red Economy,” said its move was to protest the Federal Government’s inability to tackle critical national issues including the anti-corruption war.