The Shell Petroleum Development Company of Nigeria Limited (SPDC), the Royal Dutch Shell’s Nigerian subsidiary, on Wednesday declared force majeure on exports of Bonny Light crude, Nigeria’s largest oil revenue source. The declaration, if prolonged, may negatively affect the 2020 budgetary revenue projections from the oil sector and by implication, efficiency of the capital budget. Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.

A news report by Reuters quoted SPDC spokesman as saying that the force majeure declared on Bonny Light crude oil exports was effective from January 20. The spokesman said the decision came after the shutdown of the Nembe Creek Trunk Line (NCTL) and declaration of a force majeure by the pipeline’s operator, Aiteo. Lagos-based Aiteo spokesman, Indiana Mathew, did not respond to inquiries from Daily Trust.

The NCTL is one of two major pipelines carrying Bonny Light crude to the export terminal. Bonny Light, one of Nigeria’s key export grades, is popular with refiners globally, with production ranging around 250,000 b/d in the past year. It was not immediately clear how much of this would be impacted by the pipeline shutdown but delays now will ripple through the balance of exports in months to come. Meanwhile, the Nigeria Liquefied Natural Gas Ltd (NLNG) has signed a deal with Total for 1.5 million tonnes of LNG per year. The agreement is for 10 years, with volumes to be supplied to Total from trains 1, 2 and 3 of the Nigeria LNG plant at Bonny.

The deal is in line with Nigeria LNG’s “drive to continue to deliver LNG globally in consolidation of its position as one of the top-ranking LNG suppliers in the world”, the company said in a statement. Nigeria LNG has been remarketing some volumes from its existing trains as some contracts approach expiry. Nigeria LNG is a joint venture between the Nigerian National Petroleum Corporation, Shell, Total and Eni.

Read more: https://www.dailytrust.com.ng/spdcs-force-majeure-on-bonny-light-threatens-2020-oil-revenue-target.html

Words will fail me to describe how much I hate this SPDC of a company. Make me the President I will retrieve their license within the Q1 of my tenor

Abeg joo, I will Build a Professional Logo for your Product or Company For 2k Only. Offer valid Today Only. See my info below to Chat me

Buhari!!!

Interesting

DCmonster:
Buhari!!!

pretty sure you don't understand what was written

White racist oil companies and sabotage!

It's too early to start thinking about failed budget, when are we to get things right in this country

The force declaration is necessary

This will have a negative toll on our oil dependent economy. However on the global scale, not much impact will be felt as there's an already subsisting supply glut in the oil market couple with the China virus potentially reducing oil usage.

Alright.. Since the planners of the national economy has perpetually chosen to be lazy in their thought processes, simple incidents like this will continue to have resounding ripple effects on the economy.
Diversification is the key word.


Meanwhile, register your Business, Church and Company with the CAC at discounted prices. Check our signature and page for more details.

Offer lasts for a limited period only.

And the situation might even get worse from this moment onwards.


B.u.h.a.r.i. WHY

The Shell Petroleum Development Company of Nigeria Limited (SPDC), the Royal Dutch Shell’s Nigerian subsidiary, on Wednesday declared force majeure on exports of Bonny Light crude, Nigeria’s largest oil revenue source. The declaration, if prolonged, may negatively affect the 2020 budgetary revenue projections from the oil sector and by implication, efficiency of the capital budget. Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.

A news report by Reuters quoted SPDC spokesman as saying that the force majeure declared on Bonny Light crude oil exports was effective from January 20. The spokesman said the decision came after the shutdown of the Nembe Creek Trunk Line (NCTL) and declaration of a force majeure by the pipeline’s operator, Aiteo. Lagos-based Aiteo spokesman, Indiana Mathew, did not respond to inquiries from Daily Trust.

The NCTL is one of two major pipelines carrying Bonny Light crude to the export terminal. Bonny Light, one of Nigeria’s key export grades, is popular with refiners globally, with production ranging around 250,000 b/d in the past year. It was not immediately clear how much of this would be impacted by the pipeline shutdown but delays now will ripple through the balance of exports in months to come. Meanwhile, the Nigeria Liquefied Natural Gas Ltd (NLNG) has signed a deal with Total for 1.5 million tonnes of LNG per year. The agreement is for 10 years, with volumes to be supplied to Total from trains 1, 2 and 3 of the Nigeria LNG plant at Bonny.

The deal is in line with Nigeria LNG’s “drive to continue to deliver LNG globally in consolidation of its position as one of the top-ranking LNG suppliers in the world”, the company said in a statement. Nigeria LNG has been remarketing some volumes from its existing trains as some contracts approach expiry. Nigeria LNG is a joint venture between the Nigerian National Petroleum Corporation, Shell, Total and Eni.
Read more: https://www.dailytrust.com.ng/spdcs-force-majeure-on-bonny-light-threatens-2020-oil-revenue-target.html

NIGERIA AND PARTICULARLY THE NORTHERN PART SHOULD GO AND FACE AGRICULTURE.

They should stop DAY DREAMING over a product that is fast becoming lesser and lesser irrelevant.

Hmm... I thought they said Shell has shut down operations in Nigeria!?

Nigeria do not have anything to diversify to! This pack of cards will all come down on everyone!

Interesting times

Are u Sure dis woman won’t be like dezieni maduekwe

Sunnycliff:
This will have a negative toll on our oil dependent economy. However on the global scale, not much impact will be felt as there's an already subsisting supply glut in the oil market couple with the China virus potentially reducing oil usage.

hahaha how is it reducing it

Roon9:
Hmm... I thought they said Shell has shut down operations in Nigeria!?

Shut which operation?
Shell remains the largest oil and gas company in Nigeria based on production per day. Shell alone produces 50% of Nigeria's crude oil.

Kinematics:



Shut which operation?
Shell remains the largest oil and gas company in Nigeria based on production per day. Shell alone produces 50% of Nigeria's crude oil.

So who is now spreading those rumours? How come they have sold a lot of assets at different locations

Too bad

Kinematics:



Shut which operation?
Shell remains the largest oil and gas company in Nigeria based on production per day. Shell alone produces 50% of Nigeria's crude oil.

i wonder where you got your information from that Shell produces 50% of Nigeria's output. Nigeria produces 2 million barrels a day on the average. are you saying shell produces 1 million barrels on the average a day? how many barrels of oil does Shell produce per day Globally? anyways, they are the biggest players but their production has been cut over the years because they sold off so many assets

larryUG:


i wonder where you got your information from that Shell produces 50% of Nigeria's output. Nigeria produces 2 million barrels a day on the average. are you saying shell produces 1 million barrels on the average a day? how many barrels of oil does Shell produce per day Globally? anyways, they are the biggest players but their production has been cut over the years because they sold off so many assets

I'm not just here just to comment. I'm giving you fact. Yes shell has sold off most of their onshore facilities, but they still remain the biggest player in the Nigerian oil and gas industry. You can do your findings shell alone account for 50% of Nigeria's daily production.

Roon9:



So who is now spreading those rumours? How come they have sold a lot of assets at different locations

Yes theyve sold off most of their land assets mostly in Delta State. In States like Rivers, Bayelsa, Imo and Abia shell still rule. Though they are still selling off many of their onshore assets and moving offshore.

Kinematics:



Yes theyve sold off most of their land assets mostly in Delta State. In States like Rivers, Bayelsa, Imo and Abia shell still rule. Though they are still selling off many of their onshore assets and moving offshore.

OK. Delta's own pained me alot

Citytrend:
Words will fail me to describe how much I hate this SPDC of a company. Make me the President I will retrieve their license within the Q1 of my tenor

Abeg joo, I will Build a Professional Logo for your Product or Company For 2k Only. Offer valid Today Only. See my info below to Chat me

The Cooperate branding department of SPDC is hiring. I would like to recommend you...expect a message today.....oh! never mind! you hate SPDC

Niger delta oil money working for the northerners, all the oil money is given to the northerners to enrich themselves on the pretext of fighting Boko and Islamic terrorists group.

francmoda:


The Cooperate branding department of SPDC is hiring. I would like to recommend you...expect a message today.....oh! never mind! you hate SPDC

You can sound like a drunk officer for all I care

Citytrend:
You can sound like a drunk officer for all I care

ok

Roon9:



So who is now spreading those rumours? How come they have sold a lot of assets at different locations

They have sold their on-shore operations to focus exclusively on off shore production.

einsteine:


They have sold their on-shore operations to focus exclusively on off shore production.

I see

What is the minister of petroleum doing abt dis