Blast at terminal reduces crude oil production by 25,000 barrels per day

Eni, the parent company of Nigerian Agip Oil Company (NAOC) on Monday declared a Force Majeure on expected oil output at its Brass terminal in Yenagoa.

The declaration means a shortfall of 25,000 barrels of crude oil and 13 million standard cubic metres of gas per day from the terminal.

A Force Majeure is a legal clause in contracts which 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. The incident was caused by a blast, consequently causing a spill.

“All wells connected to that pipeline were immediately shut whilst river booms and containment barges were mobilised to reduce the impact of the spill.

“Regulators for inspection visit and repair teams have also been activated. The Federal Government, Bayelsa and security authorities were notified,’’ Eni stated.

The blast, which occurred a couple of days ago resulted from an attack on the facility, Eni stated.

It was the second attack in the last three weeks after a similar incident on Feb. 28 at Eni’s Obama flow station.

The Obama incident led to production shortfall of 5,000 barrels of crude oil per day.

“Force Majeure has been declared at Brass terminal, Bonny NLNG and Okpai Power Plant,’’ Eni stressed.

The National Oil Spills Detection and Response Agency confirmed that Joint Investigative Visits on the two incidents had been conducted.

It said that field officers assigned to the visits had not filed their reports, however.(NAN)