Business
Nigeria to Lose N1.2Billion Daily as Oil Production Dip by 25,000 Barrels Per Day
Eni, the parent company of Nigerian Agip Oil Company (NAOC) on Monday declared a Force Majeure on expected oil output at its Brass terminal in Yenagoa. This implies a shortfall of 25,000 barrels of crude oil and 13 million standard cubic metres of gas per day from the terminal.
This was sequel to a blast at its facility, which could trigger a $2.84 million (about N1.2 billion) daily in oil export loss. The Federal Government, Bayelsa (Government) and security authorities were notified and regulators for inspection visits and repair teams have been activated.
A Force Majeure is a legal clause in contracts which absolves firms from legal liabilities due to circumstances beyond their control.
“An incident occurred on the Ogoda/Brass 24 oil line at Okparatubo in Nembe Local Government Area of Bayelsa. The incident was caused by a blast, consequently causing a spill. This is coming three weeks after a similar incident on February 28.
“All wells connected to that pipeline were immediately shut whilst river booms and containment barges were mobilised to reduce the impact of the spill.
“Regulators for inspection visit and repair teams have also been activated. The Federal Government, Bayelsa and security authorities were notified,” Eni highlighted, in a statement. The first incident led to a production shortfall of 5,000 barrels of crude oil per day.
“Force Majeure has been declared at Brass terminal, Bonny NLNG and Okpai Power Plant,” Eni stressed.
The National Oil Spills Detection and Response Agency confirmed that Joint Investigative Visits on the two incidents had been conducted.
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