Shell Suspends Operations Over Sustained Pipeline Bombings By Militants

SAN FRANCISCO, May 11, (THEWILL) – In the wake of continued attacks on its Nembe creek trunkline in Nigeria's Niger Delta region, Shell Nigeria Exploration and Production Company, SNEPCo, on Tuesday evening declared force majeure on its operations.

There are fears that the major oil company's declaration of the legal clause that permits stoppage shipments without breaching contracts will further affect Nigeria's oil output, which is currently at a 22-year-low.

In a statement, Shell said it invoked the clause, which originally means a “superior force” often used in contractual terms for damage, in which no party involved in the contract can be held accountable, following a leak at the Nembe creek, which may result to more unavoidable accidents.

The company added that repairs on the 90-kilometre trunk line are being carried out by AITEO Eastern E&P Company, with no record on when the repair will be concluded.

Shell had in February declared force majeure after an attack on a pipeline feeding the Forcados terminal, which typically exports about 200,000 barrels a day.