Now Agip too has stopped producing oil in Bayelsa

by Chi Ibe

Eni, parent company of Nigerian Agip Oil Company (NAOC), has now joined Shell Petroleum and ExxonMobil in declaring force majeure on oil exports from the Brass Oil Export Terminal off Bayelsa shoreline.

Force majeure removes from 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.

It would be recalled that Shell declared force majeure after continued attacks on its Nembe creek trunkline in the Niger Delta that led to a leak.

ExxonMobil also announced a temporary action this year due to obstructions along a bridge leading to its Forcados terminal.

Eni said its production was cut by 4,200 barrels per day after 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.

“I can confirm the attack to the Ogbaimbiri – Tebidaba pipeline, with 4,200 bp/d (Eni’s equity) of production affected,” . a spokesman for the company told the News Agency of Nigeria. “I can confirm that Force Majeure has been placed on Brass Oil Exports from May 22, 2016.”

These repeated attacks by militants are costing the company about 800,000 barrels of crude oil. Every day.

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