World Loss Log: 31 March - 27 April 2009

Property and business interruption

12.4, pipeline shutdown

Nigeria: Shell shut down a major crude oil pipeline and several adjoining flow stations in Nigeria’s southern Rivers State following a fire which broke out on the company’s Trans-Niger Pipeline. All the feeder flow stations outside Ogoniland (in Rivers State) adjoining it were also shut down to allow for repairs. The action amounted to a production loss of 180,000 barrels a day involving a range of companies. The loss included 130,000 barrels per day for Anglo-Dutch oil giant Shell, 30,000 barrels for French group Total and another 20,000 barrels from various other operators. The declaration made by Shell’s local unit, Shell Petroleum Development Co, protects the supplier from lawsuits for not meeting oil deliveries to customers due to actions outside the company’s control. The force majeure was expected to be in place for April and May.