Eni lifts ‘Force Majeure’ on Gas Export Feed to NLNG after Vandalisation of Pipeline
Eni, the Italian parent company of Nigerian Agip Oil Company (NAOC) has confirmed that it has lifted the ‘Force Majeure’ following the repairs on a vandalized 4-inch gas line at Okaka in Yenagoa.
The Force majeure was lifted at Bonny NLNG on April 13, while it was declared on April 6. Force Majeure is a legal clause inserted in contracts to protect suppliers from liabilities due to circumstances beyond their control.
Eni issued a statement on this last Friday, emphasizing that normalcy has returned to its gas export operations. Vandalism in the past months has affected Nigeria’s electricity distribution and oil production value chains.
Productions in some crude wells have been halted or reduced to as low as 20% of output.
The ‘Force Majeure’ was placed on ENI’s gas operations which halted gas export feed to the Nigeria Liquified Natural Gas (NLNG) by 5 million Standard Cubic Meters per day (MMSCM/d) at the 24-inch gas line at Okaka in Yenagoa.
They also indicated that normalcy has returned to its gas export operations, following the restoration of the Ogboinbiri to Obiafu/Obrikom gas pipeline at Okaka in Yenagoa Local Government Area of Bayelsa State, after it was vandalized by third-party interference on April 5.
Mr. Idris Musa, director-general and chief executive of National Oil Spills Detection and Response Agency, revealed that investigations traced the incidents to sabotage by vandals. The company stated that it shut in all gas wells that feed the line to douse pressure and pave way for repairs which were completed on April 8.
The company said, “A gas leak incident due to third-party interference occurred on 5th April along 24’ Ogbainbiri to Obiafu/Obrikom Gas pipeline at Okaka in Yenagoa Local Government Area of Bayelsa State.”
It added that all wells conferring in that pipeline were immediately shut in and line depressurised whilst the area was cordoned off for safety reasons.