TheCable

ExxonMobil has declared a force majeure on oil liftings from several terminals in Nigeria following industrial action by the company’s in-house workers union. 

Force majeure is a clause that allows a company to skip contractual obligations following issues beyond its control.

Michelle Gray, ExxonMobil spokesperson, in a statement on Monday, promised that the company was exploring ways to resolve the issues with its workers.

“We will continue to take all reasonable actions necessary to resolve the impasse as soon as possible. The safety of our people, assets, and environment remains our top priority,” she said.

According to Bloomberg, a spokesperson for Mobil Producing Nigeria Unlimited — a Nigerian subsidiary of ExxonMobil — said three units of the oil firm declared force majeure.

The entities that declared force majeure from their terminals were Mobil Producing Nigeria, Esso Exploration and Production Nigeria Ltd, and Esso Exploration and Production (Offshore East) Ltd, the spokesperson said.

The development comes at a period when the country is struggling to meet its Organisation of Petroleum Exporting Countries (OPEC) voluntary production of 1.74 million barrels of oil per day.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had said oil output dropped to an average of 1,268,202 barrels bpd in March 2023.

In the same month, an explosion had rocked a crude oil tapping point in Rumuekpe community in Emuoha local government area of the state.

The tapping point is said to be on the Trans-Niger Delta Pipeline (TNP) that passed through the community.