Italian energy group Eni declared force majeure on exports of Nigerian Brass River crude oil following a blast at a pipeline in Bayelsa state that a Nigerian industry body blamed on vandalism, the company said on Monday.
The group said it had cut oil exports from its Brass Export terminal by some 25,000 barrels per day.
With the force majeure, Nigeria could be losing at least $2.84million per day.
At the price of at least $113.4 per barrel of Bonny Light on Monday, Nigeria’s loss from crude oil exports could amount to $2.84millioni per day. The loss will continue until the damaged facilities are repaired.
The incident is the second attack in a few days, after an earlier incident on February 28 at its Obama flow station led to a production shortfall of 5,000 barrels per day, the oil company said.
Eni said the incident at the pipeline was the second attack after another blast on Feb. 28 at its Obama flow station led to a production shortfall of 5,000 barrels per day.
Force Majeure is a legal clause in contracts that 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 State,” the company said.
“The event was caused by a blast, consequently causing a spill. All wells connected to that pipeline were immediately shut-in whilst river booms and containment barges were mobilized to reduce the impact of the spill.
“Regulators for inspection visit and repair teams have also been activated. State and Federal Government and Security authorities were notified. Deferred production is estimated at 25 kbopd oil and about 13 MSCM/d of gas.
“Force majeure has been declared at Brass terminal, Bonny NLNG and Okpai Power Plant,” Eni stated.
The National Oil Spills Detection and Response Agency (NOSDRA) confirmed that Joint Investigative Visits on the two incidents have been conducted, but said that the field officers assigned were yet to file their reports.
The Director-General of NOSDRA, Mr Idris Musa, said the two incidents were traced to vandalism, adding that 20 barrels leaked in the Feb 28 incident, while 1,249.8 barrels were discharged into the environment in the second incident.
Meanwhile, residents at the predominantly fishing settlements who operate in the creeks and near the Atlantic shoreline at Nembe and Brass in Bayelsa have lamented the adverse impact of frequent spills in the area.
Mr Noel Ikonikumo, Chairman, United Fishing Union, Sangana, listed the oil spills to include the November 5, 2021 well blowout from Aiteo’s field in Nembe, a gas leakage at Conoil’s field at Sangana in Brass LGA also in Nov 2022.
He said that barely three months after the Nov 5, 2021 incident from Aiteo’s field, another leak occurred in February, while two other incidents occurred near Ship’s Obama Flow station in Nembe, which cumulatively polluted the waters they fish in.
