Force majeure declared in Nigeria over pipeline fire, 8 pct decrease in output

The crude oil exports in Nigeria have suffered a setback as Aiteo Eastern Exploration and Production Company Limited announced 'force majeure' on Nembe Creek Trunk Line following a fire outbreak.

The oil company has declared declaring a 'force majeure' shutdown after a fire. The temporary closure is expected to cut Nigeria's oil production by about 8 percent per day. Force majeure is a legal clause that allows companies to cancel or delay agreed deliveries due to unforeseen circumstances.

The Nembe Creek Trunk Line has a carrying capacity of more than 150,000 barrels per day and is used to transport crude oil from the eastern Niger Delta to the Bonny Export Terminal in Rivers state in southern Nigeria.

The company said it suspected the fire may have occurred through 'an illegitimate third-party breach'. Over the past two years, Nigeria has been steadily recovering in crude oil production, due to the cessation of hostilities by the Niger Delta oil militants.

Also Read: South Sudan: Person living in Jonglei State can file divorce if spouse suffers from HIV/AIDS