Niger Delta Trouble!! ExxonMobil Shuts Down Production, Evacuates All Their Staff

ExxonMobil, one of the international
oil companies operating in Nigeria,
has shut down production at its Qua
Iboe crude terminal in the Niger
Delta.
According to Reuters, the closure of
the crude terminal was followed by
an evacuation of staff of the oil
company, following threats from
Niger Delta militants.
Earlier, Shell Nigeria Petroleum
and Exploration Company
(SNEPco), declared force majeure –
a legal clause that allows it to stop
shipments without breaching
contracts – last week, following
continued attacks on its Nembe
creek trunkline in the Niger Delta
region of Nigeria.
ExxonMobil had also declared force
majeure after a drilling rig,
experiencing mechanical
difficulties, damaged the pipeline it
jointly owns with the Nigerian
National Petroleum Corporation
(NNPC).
It resumed production earlier in
the week, only to shut down
midweek, following the threat.
In a statement issued by Shell last
week, it said the clause, which
originally means a “superior
force”, was invoked, following a
leak at the Nembe creek, which
may result to more unavoidable
accidents.
The company added that repairs on
the 90-kilometre trunk line are
being carried out by AITEO Eastern
E&P Company, with no record on
when the repair will be concluded.
In February, Shell also declared
force majeure after an attack on a
pipeline feeding the Forcados
terminal, which typically exports
about 200,000 barrels a day.
International Energy Agency (IEA)
estimated in April that Nigeria
could lose an estimated $1 billion
in revenue by May, when it expects
repairs on Forcados to be
completed.
Ibe Kachikwu, minister of state for
petroleum, had said Nigeria was
losing 800,000 barrels on a daily
basis as a result of the activities of
militants.
Sources however say Nigeria’s
production has fallen to one
million barrels, with condensate
ramping it up 1.4 million.
The current disruption caused by a
group called the Niger Delta
avengers, could bring Nigeria’s oil
output to new lows, as the country
is currently producing less than
Angola, the largest exporter in
Africa.