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Nigeria Unlocks 5 Million Standard Cubic of Gas as Eni Lifts Force Majeure.

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Eni, the parent company of Nigerian Agip Oil Company (NAOC), has said on Friday that it had lifted its force majeure on gas exports from Okaka in Bayelsa state, Nigeria, after a vandalized pipeline has been repaired. Eni declared this force majeure on April 6 after a hacksaw cut damaged the gas pipeline from Ogboinbiri to Obrikom, resulting in a loss of 5 million standard cubic meters per day.

Crude oil production was disrupted this week after an Eni pipeline was vandalized in the Niger Delta region. A spokesperson for the company said that operations have been fully restored. Disruptions to production are common in this area due to frequent vandalism of pipelines and theft of crude oil for illegal refining.

Recall that a former event occurred on a riser of the Obama/Brass 18 oil line on February 28 and caused a production deferment of about 5,000 barrels of oil per day for a few days. Due to the incident on the gas pipeline operated by its Nigerian unit, NAOC, Eni reports that gas export feed to NLNG has been cut by five Million Standard Cubic Meter per day (MMSCM/d). The company announced that it closed all of its gas wells that feed the line, in order to repair it. The repairs were completed on April 8. A gas leak occurred on the 24’ Ogbainbiri to Obiafu/Obrikom Gas pipeline on 5th April at Okaka in Yenagoa Local Government Area of Bayelsa State. The company said it was caused by third-party interference. It further said that the relevant government regulatory agencies and the community were promptly notified and a joint investigation visit confirmed sabotage.

Recall that AGO prices have been fluctuating over the weeks and this is largely affected by the instability in Ukraine caused by Russia’s invasion. However, the incessant pipeline vandalism by natives in our geographical environment also affects prices of AGO. Some Oil companies are divesting from Nigeria as a result of these circumstances.

Source:  Oriental News

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