Shell declares force majeure as Pulau Bukom situation stabilises
Published on Oct 2, 2011
Shell has confirmed earlier media reports that it has declared force majeure on some of its customers, in a press statement released on Sunday.
Force majeure is a common clause in contracts that frees both parties from liability when an extraordinary event or circumstance beyond the control of the parties occurs.
In this case, the declaration means that Shell is unable to guarantee supply to its customers, and excuses the oil group from contractual agreements, explained Mr Victor Shum, managing consultant at energy consultancy Pervin and Gertz.
Mr Lee Tzu Yang, chairman of Shell Companies in Singapore said in a press statement: 'We confirm that force majeure has been declared on some of our customers. We continue to be in discussions with our customers to address their supply of product needs and to minimise any potential impact to them.'
On Sunday morning, the Singapore Civil Defence Force (SCDF) began a phased withdrawal of its fire-fighting team.
As of 6.30pm, it had formally handed over the pump-house area, which was the site of the fire, back to Shell. The SCDF, however, will maintain a small presence on Pulau Bukom as support and will fully withdraw once the situation is stable.
Mr Lee said the oil group is now investigating the cause of the fire to prevent a repeat of the same incident.
