Eni cuts production by 4,200 barrels per day
A subsidiary of Italian oil producer Eni has declared a force majeure following an attack on a key gas pipeline in southern Nigeria, the company said Tuesday.
The measure at the Brass Rivers terminal took effect Sunday after the Ogbaimbiri–Tebidaba pipeline was attacked by suspected militants.
“I can confirm the force majeure on Brass,” Eni said in an emailed statement.
Force majeure is a legal term that frees a company from any contractual obligation due to circumstances beyond its control.
The company said the attack on the pipeline — the second in under a month — led to an oil output loss equivalent to 4,200 barrels per day.
Nigeria has seen an upsurge in attacks on critical oil infrastructure in recent months, prompting President Muhammadu Buhari to order enhanced security.
Africa’s leading economy relies on oil sales for 70 percent of government revenue but income has been hit by the global fall in oil prices since mid-2014 and increased militancy.
Vice-President Yemi Osinbajo has said production is now at 1.4 million barrels per day, against a budgeted 2.2 million bpd.
A group calling itself the Niger Delta Avengers (NDA) has claimed responsibility for a wave of attacks on pipelines and facilities operated by Shell, Chevron and Nigeria’s state-run oil firm.
The Niger delta region was plagued by attacks on oil facilities and personnel in the 2000s by militants seeking a fairer share of the region’s oil wealth, until a government amnesty was introduced in 2009.
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1 Comments
What is all this force majeure? Please please all we ask is for a total closure period. No more oil output from the Niger Delta till the status quo is corrected. We need to revisit the national conference recommendations. No way will 85% of the oil blocks be owned by Northerner and Yorubas, while the Niger Deltas are kept behind, and given pipeline contracts only. Please we want total control of our destiny and resources. Oil is now found in Yorubaland, and guess what Folawiyo family is controlling it, and no outsider will own a block there. Oil when discovered in North will equally be owned by the Northerners. No Niger Deltan will even be recommended to be a mere kerosene distributor. Please we have woken up from our slumber. If the fowl does not eat what belongs to her, then the fowl will scatter the feed. I am going now to the room to dress up for another night raid on the pipelines.
We will review and take appropriate action.