Shell declares force majeure on Nigeria LNG supply

  • Shell has declared a force majeure on its gas deliveries from Nigeria's liquefied natural gas (LNG) plant following an attempt to steal crude oil from a pipeline that resulted in a fire.

    "An attempt was made to steal crude oil from the Bomu-Bonny trunk line and offload it onto a waiting ship that led to a fire on the line and on the ship on Sunday," a Shell spokesman said on Saturday.

    The force majeure, which covers the company if delivery does not occur due to circumstances beyond its control, came into effect on October 4, he added.

    Shell, which has a 25.6 percent stake in Nigeria LNG, shut its 28-inch Bomu-Bonny trunk line last week after oil thieves caused a fire.

    Nigeria is Africa's largest oil producer. In recent years, the theft of oil to sell on the black market has been a growing problem.

    Shell estimates that 150,000 barrels of oil and condensate are stolen in the country every day.