November 9, 2012 / 4:16 PM / 5 years ago

CORRECTED-UPDATE 1-Eni declares force majeure on Nigerian Brass oil exports

(Changes name of oil grade in para 5 from Qua Iboe to Forcados)

GENEVA, Nov 9 (Reuters) - Italian oil firm Eni said it had declared force majeure on Brass River oil loadings from Nigeria due to floods, in a sign the African country’s export problems are worsening.

“I can confirm the force majeure, and the reason is the persistent flooding,” an ENI spokesman said, when queried about information from a trade source.

He said he could not provide an end date for the force majeure, a clause that allows a company to suspend contractual obligations in the face of unexpected events.

The trade source said the loading delays were eight to 10 days.

Nigeria’s worst floods in 50 years, combined with oil theft, prompted Royal Dutch Shell to declare force majeure on two other large Nigerian oil streams, Bonny Light and Forcados, in late October.

A second trade source said on Friday that loading delays on Nigeria’s benchmark Qua Iboe grade also have lengthened to seven to nine days from two to three days earlier this month.

The Eni force majeure came after an official at the Nigerian Department of Petroleum Resources had said earlier this week that flooding was no longer affecting output. (Reporting by Emma Farge; editing by Jane Baird)

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