Eni, the parent of Nigerian Agip Oil Company (NAOC), has lifted the force majeure on oil output from Brass terminal, gas feed to Bonny NLNG and Okpai Power Plant after it completed repair on its facilities that was damaged by blast from vandals.
Recall that on Monday, two major oil production companies, Shell Nigeria and Eni had declared force majeure on exports due to a major disruption on their pipelines.
The Italian multinational oil company, in a statement obtained by EnergyDay revealed that the decision to lift the force majeure was a result of the restoration of the Ogoda/Brass 24″ oil pipeline at Okparatubo, Nembe Local Government Area, Bayelsa State.
Eni said, “Following the restoration of the Ogoda/Brass 24″ oil pipeline at Okparatubo (Nembe Local Government Area, Bayelsa State), which was hit by blast on March 5 caused by a third-party interference, force majeure has been lifted at Brass terminal, Bonny NLNG and Okpai Power Plant today (Friday).”
Eni’s facility at Nembe, deferred gas output of 13 million standard cubic metres(Mscf) per day and cuts supply at the terminal by 25,000 barrels per day as a result of the disruption.
Meanwhile, Shell on its part is yet to make official statement confirming lifting force majeure on Bonny Light oil export programme which started in March 3, 2022.
EnergyDay’s check shows that Force majeure gives legal right to oil companies not to meet contractual obligations out of their control. The recent attack on Eni’s facility leading to production shortfall of 25,000 bpd was the second after another blast on February 28 at its Obama flow station led to a production shortfall of 5,000 barrels per day.
The disruption on facilities where the two Nigerian crude grades are produced has had a major supply implications on the country against the backdrop of the prolonged occupation of Ukraine by the Russian army.