Exxon Declares Force Majeure on Nigerian Oil Lifting

 Exxon Declares Force Majeure on Nigerian Oil Lifting

ExxonMobil Corp units in Nigeria have declared force majeure over oil shipments from several terminals in the country after industrial action, a spokesman for one of the companies told Bloomberg.

Three units of the US major have declared a milestone allowing them to waive contractual obligations due to events beyond their control, a spokesman for one such entity, Mobil Producing Nigeria, said via email.

Exxon is one of Nigeria’s largest oil producers and its Qua Iboe program is one of the country’s largest export streams. The company pumped more than a fifth of the country’s barrels last year, according to data compiled by Bloomberg.

The outage will deal a severe blow to Nigeria, whose oil supply has been plagued by disruptions, including pipeline thefts and sabotage, for several years. Traders can sometimes be reluctant to buy Nigerian casks for fear that supplies will not load as expected.

The companies that declared force majeure were Esso Exploration and Production Nigeria Ltd. and Esso Exploration and Production (Offshore East) Ltd., which reported measurements from their terminals, the spokesman said.

Related post