Royal Dutch Shell on Wednesday said it had deferred shipments of crude oil from its Nigerian Forcados exports terminal for two months due to delays in repairing a key pipeline damaged by vandals.

"SPDC JV (Shell Petroleum Development Company) declared force majeure on Forcados offtake programme for the remainder of June and for July", effective June 16, the company said in a statement.

"This is as a result of deferment caused by damage to Trans Forcados trunkline," it said.

The company said it was taking steps to repair the pipeline and resume production.

Shell first declared force majeure on Forcados exports on March 7 in respect of March and April shipments after unknown vandals blew up the Trans-Escravos oil pipeline which collects crude from various production plants scattered around the restive Niger Delta region.

The force majeure was extended last month.

Shell has been a regular target of attacks by militants in southern Nigeria over the past three years, forcing it to shut down some facilities and several times defer contractual obligations to clients.

In February it declared force majeure on shipments from its main Nigerian Bonny terminal due to increased attacks by insurgents on key facilities.

In November 2008, Shell declared force majeure on gas supplies to Nigeria Liquified Natural Gas Ltd (NLNG) after closing its Soku gas plant to repair a nearby pipeline damaged by thieves.

The last three years have seen an increase in attacks and kidnappings targeting oil companies in the volatile region.

Unrest in the Niger Delta has substantially reduced Nigeria's oil output, putting pressure on crucial export earnings.

Daily oil production in Nigeria currently stands at 1.8 million barrels, according to the latest June report of the International Energy Agency, lower than the 2.6 million barrels of 2006.

AFP

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