Shell extends force majeure on oil, gas

Called force majeure, the period of grace was occasioned by attacks and subsequent kidnap of oil workers by militants at the weekend.

Corporate Affairs Manager (External) of SPDC, Dr. Don Boham, in a statement explained that the oil company’s management had resolved to minimise the risk posed by militants and so, could not meet its obligations on the export of oil and gas from the EA and Forcados fields.

SPDC had earlier in January this year, declared force majeure on lifting of crude oil from its oilfields after a series of militant attacks but had to extend it yesterday after another attacks on its facilities at the weekend.

A force majeure is the inability of a company to honour its contractual agreement with its partners.

The attacks had forced Shell to shut in 455,000 barrels of crude per day, as a precaution after militants at the weekend bombed the Forcados terminal, sabotaged two pipelines and kidnapped nine foreign oil workers, which figure represents 40 per cent of the nation’s oil exports.

The hostages taken by the militants comprise three Americans, two Egyptians, two Thais, one Philippino and a Briton from a barge operated by U.S. services company, Willbros, working on Shell project. President Olusegun Obasanjo said the action by the militant youths against the oil industry could force oil giants to pull out from the winding creeks of the Niger Delta, but ruled out military action to free the hostages.

“We believe that very, very soon we should be able to reach the hostage takers. We’ve put in place a very powerful committee,” said Abel Oshevire, a spokesman for the Delta State government, agency reported yesterday.The panel chaired by Chief Edwin Clark.

The restive youths said in a statement said the hostages would not be released, the attacks on oil facilities would not stop, until Shell paid $1.5 billion in compensation to polluted Ijaw communities.

They also demanded the release of two detained Ijaw leaders–a separatist warlord and an ousted state governor accused of embezzling hundreds of millions of dollars.

Besides, they insist that the Delta region must control its own resources, according to the agency report.