Exxon Says Nigerian Exports Hit After Pipeline Damage
May 13 2016 - 9:20AM
Dow Jones News
By Sarah Kent
LONDON-- Exxon Mobil Corp. Friday said its exports of Nigerian
crude had been disrupted after a drilling rig damaged multiple
pipelines in the West African country.
The incident is the latest blow for Nigeria's oil sector, which
has been plagued by a series of outages caused by damage to the
country's infrastructure. In the past week, both Royal Dutch Shell
PLC and Chevron Corp. have faced disruptions to their Nigerian
output and the International Energy Agency said Thursday the
country's oil production hit a two-decade low in April.
Exxon said the incident occurred on May 8 when a drilling rig
owned by Depthwize Nigeria Ltd. and drilling on behalf of Conoil
Producing Ltd. experienced mechanical difficulties and damaged
Exxon's pipelines.
The company said some of its production had been curtailed and
declared force majeure, a move that gives it legal indemnity for
being unable to fulfil its export obligations.
Exxon didn't say how much oil was coming off line and wouldn't
confirm the location of pipelines. The company operates the
pipelines as a joint venture with Nigerian National Petroleum
Corp.
We are working with NNPC to manage potential supply impacts, and
with Depthwize to remove the rig and complete the damage
assessment, Exxon said in an email.
Write to Sarah Kent at sarah.kent@wsj.com
(END) Dow Jones Newswires
May 13, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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