Shell PLC pipelines damaged
Royal Dutch Shell PLC warned Tuesday that it won’t be able to make its estimated production for two types of oil pumped from Nigeria, largely blaming attacks on its pipelines by thieves wanting to steal crude.
Shell said in a statement it had declared a “force majeure” warning Friday for shipments of its Bonny and Forcados crude oil — meaning it is impossible for the company to cover the promised supply from the field. Those two types of crude represent a major chunk of the oil produced in Nigeria by Shell, long the dominant foreign oil company in the West African nation. While flooding had affected its Bonny operations, Shell said attacks on the pipelines of its local subsidiary caused the majority of its problems.
A ship containing fuel stolen from its Bomu-Bonny pipeline caught fire alongside the pipe, causing damage, Shell said. Attacks also occurred on its Trans-Forcados and Brass Creek pipelines, the company said.
The company said it was working to repair the pipelines, but gave no estimate about when the lines would be running at capacity again.