Shell and Eni declare force majeure on major oil flows in Nigeria

Aya Hussein Both Shell and Eni have declared force majeure on the major oil flows from Nigeria, threatening to disrupt supplies in a market already worried about the impact of Russia’s invasion of Ukraine. Shell’s measure has been in place since March 3 and applies to the Bonny Export Program, Eni relates to copper ore shipments and traces a pipeline explosion in Bayelsa State.

Force majeure is a legal move that allows companies to not fulfill their contractual obligations for reasons beyond their control.

Shipments of the two items are planned at A thousand barrels per day next month but it has been in decline for the past few years, according to downloads reviewed by Bloomberg.

The flows were planned for at about 360.360 Barrels per day. 2020 Force Majeure does not necessarily mean the loss of the entire offer for a certain period of time. Stocked goods can still be shipped and repairs will allow shipments to resume.

The market is closely watching what happens to Russian oil supplies in the wake of the country’s invasion of Ukraine. Some oil companies have stopped buying shipments New ones from Moscow and some governments announced that they are imposing a ban on oil imports from Russia.

Shell said it will try to go elsewhere to get barrels. Loss of shipments may be significant for Nigeria

Loading plans showed that the country was due to export nearly 1.5 million barrels per day this month. It was not clear when force majeure began at Eni.

The company said Nigeria LNG is also affected by this measure