Nigeria LNG Declares Force Majeure

Nigeria LNG Declares Force Majeure

Nigeria LNG said it had declared force majeure on its exports of LNG as a blockade by the Nigerian Maritime Administration and Safety Agency (NIMASA) over a tax dispute entered its second week.

Following the blockade by NIMASA, we’ve had to declare Force Majeure,” Reuters cited NLNG’s spokesman Anne Marie Palmer-Ikuku as saying.

On Friday 21st June, two Nigerian Maritime Administration and Safety Agency (NIMASA) boats, with 15 naval officers on board, ordered that one NLNG vessel, LNG Imo, and one chartered vessel, Torm Thames, remain at NLNG’s loading bay, whilst another NLNG Vessel, LNG Oyo, remains outside the Bonny Channel until further notice.

NIMASA subsequently issued Ship Detention Orders on 22nd June 2013, specifically detaining three NLNG ships (LNG Enugu, LNG Oyo, LNG Imo) and barring them from accessing or leaving the company’s loading bay.

The potential implications of this current action by NIMASA on NLNG operations are enormous and would impact negatively on its international LNG Buyers, the international financial market, Nigeria to which NLNG contributes 4 % of the country’s GDP, its Shareholders and the investment climate in Nigeria, let alone the reputational impact this may have on Nigeria’s image within the international investment community,” NLNG said previously in a statement.

NLNG is owned by four shareholders, namely, the Federal Government of Nigeria, represented by the Nigerian National Petroleum Corporation, NNPC (49%),  Shell Gas BV, SGBV, (25.6%), Total LNG Nigeria Limited (15%), and Eni International (N.A,) N. V. S. a. r. l (10.4%).

[mappress]
LNG World News Staff, July 2, 2013; Image: NLNG