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Shell Petroleum Development Company, the local unit of Royal Dutch Shell, on Monday said it declared force majeure on Bonny Light oil export programme beginning from March 3, citing a decline in flows to the export terminal.

On the same day, Italian energy giant Eni also declared the same measure on exports of Brass River crude oil, triggered by a pipeline explosion in Bayelsa State. Force majeure legally allows a company not to meet contractual obligations for reasons that are out of its control.

The twin occurrences is likely further pressure a market reeling from the weighty implications of Russian occupation of Ukraine by complicating supply woes.

The two Nigerian grades – Bonny Light and Brass River – were part of a shipment programme of 170,000 barrels of crude per day (bpd) for April even though they have seen a continuous for years, Bloomberg said, citing loading plans.

As of 2020, flows were proposed to be at 320,000 bpd.

Read the original article on Premium Times.