Pipeline bombings: Agip halts production in Bayelsa

Like Shell Petroleum and ExxonMobil, Eni, parent company of Nigerian Agip Oil Company (NAOC), on Tuesday said it had declared force majeure on oil exports from the Brass Oil Export Terminal off Bayelsa shoreline.

Force majeure is a legal concept that absolves companies from liabilities of contractual obligations due to factors outside its control.

Earlier, Shell and ExxonMobil temporarily halted production, following leaks and vandalism of oil pipelines in the Niger Delta region.

Shell declared force majeure after continued attacks on its Nembe creek trunkline in the Niger Delta region of Nigeria.

In a statement, Shell said the clause, which originally means a “superior force”, was invoked, 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.

ExxonMobil declared the same temporarily, adding that it had obstructions along a bridge leading to its Forcados terminal, which was eventually said to have been sorted.

Eni also said the oil firm’s production was cut by 4,200 barrels per day following Sunday’s attack on its pipeline in Bayelsa.

An earlier attack in the area on May 18 had resulted to a shutdown of some 1,000 barrels bringing a cumulative production loss to 5,200 barrels of the oil firm’s share of oil output.

Eni spokesperson confirmed the developments in a short e-mail response to NAN on Tuesday, said: “I can confirm the attack to the Ogbaimbiri – Tebidaba pipeline, with 4,200 bp/d (Eni’s equity) of production affected.

“I can confirm that Force Majeure has been placed on Brass Oil Exports from May 22, 2016.”

Nigeria’s oil production levels have been severely attacked by the activity of militants in the region, with the resurgence of militancy costing the nation as much as 800,000 barrels of crude oil per day.