Shell lifts force majeure on gas supplies to Nigeria

BY JENNY GROSS

LONDON -- Shell lifted its force majeure on gas supplies to Nigeria's NLNG, the company said in a statement.

"The force majeure was declared on 15th May 2013 due to a leak on the Eastern Gas Gathering System [EGGS-1] pipeline," Shell said in the statement. "The joint investigation visit to the location of the leak showed that the leak was caused by sabotage."

Shell has repaired the line and resumed gas production, the company said.

A force majeure is declared when a company is unable to fulfill its contractual obligations to deliver crude due to circumstances beyond its control. NLNG has said the disrupted gas supply was the equivalent of 40% - 50% of NLNG's usual total gas intake.

NLNG is a joint venture between the Nigerian National Petroleum, Shell, Total, and Eni.