Shell's Nigerian unit shuts key pipeline

A Shell subsidiary in Nigeria has shut down a key oil pipeling until repairs on an offshore platform are completed.

Anglo-Dutch oil group Shell's Nigerian subsidiary has declared "force majeure" on exports from a key pipeline in the south of the country because of damage caused by bad weather.

The Shell Petroleum Development Company of Nigeria Ltd (SDPC) said on Thursday daily production of 40,000 barrels of crude was suspended until repairs on the offshore platform in the EA field was complete.

The damage to the platform had prompted the shutdown of the facility near the city of Warri, in the Niger Delta region, it added.

"Force majeure" is a legal term releasing a company from contractual obligations when faced with circumstances beyond its control.

Nigeria is Africa's largest oil producer, accounting for about two million barrels of crude per day, according to the International Energy Agency.

Oil also accounts for more than 90 per cent of Nigeria's foreign exchange earnings.


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