SHELL FACES UNCERTAINTY AFTER PIPELINE SHUTDOWN
Shell Petroleum Development Company of Nigeria, through a spokesperson, announced on Thursday that unforeseeable circumstances are threatening its exportation of Forcados crude oil following a shutdown by the pipeline’s operator.
The spokesperson said the closure started on Monday after Heritage Energy Operational Services Limited, the operator, shut down the Trans Forcados pipeline on 4th April.
Shell has been facing wide-ranging challenges in Nigeria including litigations from host communities in the Niger Delta, insecurity legislative issues and the country’s acute infrastructural deficit.
“Others challenges are litigation; limited infrastructure; potential legislation that could increase our taxes or costs of operations; the effect of lower oil and gas prices on the government budget; and regional instability created by militant activities. These risks or adverse conditions could have a material adverse effect on our earnings, cash flows and financial condition,” the company’s 2019 annual report said.