Aiteo Eastern Exploration and Production Company Limited has declared force majeure on Nembe Creek Trunk Line, a major crude oil transportation channel used for the exportation/evacuation of crude to the Bonny Crude Oil Terminal.
Why Aiteo Eastern E&P Company Limited declared force majeure: The oil company was compelled to declare force majeure after a fire outbreak on the 100 kilometres long Nembe Creek Trunk Line which has a capacity of 150,000 barrels per day.
Aiteo Eastern E&P Company Limited made the decision after the fire outbreak was contained and the damages were assessed.
“WE HAVE BEEN INFORMED OF A FIRE OUTBREAK BY OUR SURVEILLANCE TEAM COMPRISING THE JTF, FSS AROUND NCTL RIGHT OF WAY NEAR AWOBA TODAY, APRIL 21, 2019.
“OUR OPERATIONS EMERGENCY RESPONSE TEAM WAS IMMEDIATELY ACTIVATED AND FOLLOWING ITS URGENT INTERVENTION AND CONTAINMENT ACTION, WE ARE CONSTRAINED TO SHUT IN INJECTION AS WELL AS OTHER RELATED OPERATIONS INTO THE NCTL. IN ACCORDANCE WITH STANDARD PROCEDURE, WE REQUESTED THE OTHER INJECTORS TO DO THE SAME.”
What is force majeure: Force majeure is a standard contractual procedure which is invoked in the occurrence of events such as natural disasters, wars, and other occurrences outside the power or control of the investing company that hampers the implementation of such contracts.
Other companies have declared force majeure in the past
Shell Petroleum Development Company had, on several occasions, been forced to declared force majeure on its facilities. In August 2015, SPDC had to temporarily stop gas supplies to Nigeria’s LNG export terminal on Bonny Island in Rivers State due to a pipeline leak, Reuters reports.
Nairametrics also reported in March last year that Integrated Energy and Distribution Marketing Company had on several occasions issued a force majeure on its facilities, while pleading with the Federal Government to buy back its 51 percent stake in Yola Electricity Distribution Plc following persistent attacks on the facilities.
Yola Electricity Distribution Plc, or Yola Disco, is located in the North Eastern part of the country which is under the control of the Boko-Haram insurgent group.