Pipeline violence causes Shell to declare force majeure on Bonny oil in Nigeria

By Phaedra Friend Troy

Royal Dutch Shell (NYSE:RDS-A, NYSE:RDS-B) has declared a force majeure on its Nigerian exports for August and September of Bonny Light crude oil, reports The Wall Street Journal.

Sabotage on Shell crude oil pipelines has increased recently, with three attacks since the start of August. Thieves have been hacking into pipelines to siphon oil and sell it in the Niger Delta region of Cawthorne Channel.

"Shell Petroleum Development Company Joint Venture declared Force Majeure on Bonny Light exports for the remainder of August and September following production deferment from recent crude theft activities in Eastern Niger Delta," Kim Blomley, group spokeswoman for Shell International, told Dow Jones Newswires.

Due to the violence against the Cawthorne crude pipelines, production has been shut-in to prevent further spilling.

The Shell Petroleum Development Company (SPDC), a joint venture that operates its Nigerian business, is working to clean the spilled oil and repair the pipeline.

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