Shell reopens terminal, lifts force majeure on Forcados crude

International oil-producing giant, Shell Petroleum Development Company (SPDC), has lifted the force majeure that was earlier declared on the export of crude oil from its Forcados Terminal. 

The monitored report from Reuters, states that the Royal Dutch shell subsidiary, lifted the force majeure, which was earlier declared by it a few days ago when it reopened the pipeline transporting crude oil from its Forcados Terminal, one of the largest in the country. 

A spokeswoman of Shell Petroleum Development Company of Nigeria stated that the Trans Forcados pipeline which is operated by Heritage Energy Operational Services Ltd has been reopened. 

Force Majeure refers to a provision which is commonly found in contracts that frees both parties from obligations if an extraordinary event prevents one or both parties from performing their obligation. 

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It could be recalled that Shell had earlier shut down the Forcados pipeline on April 4, 2020, and subsequently declared a force majeure on April 6, 2020. 

The Forcados terminal has had a long history of shutdowns in the past. The pipeline was shut down in May 2018 for repairs over heavy leakage.
In October 2016, it was shut for major repairs after a militant attack affected its loading programme. Also, the pipeline was shut down May last year by Shell and Heritage over fire outbreak and in February 2016 after a bomb attack by Niger Delta Avengers. 

The reopening of the Forcados Terminal which is the major trunk line in the Forcados pipeline system and also the second largest network in the Niger Delta after the Bonny Oil Pipeline System, would come as a major boost to the Nigerian economy and revenue drive of the Federal Government. 

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The operation of the pipeline, which export about 240,000 barrels of crude oil daily from the country, will boost the country’s ability to be able to meet up with its allocated output quota from OPEC especially during the period of huge revenue shortages.