Emergency clause to fix North Sea pipe

THE owner of a cracked North Sea oil and gas pipeline has invoked a get-out clause in its contracts typically used after natural disasters.

On Monday, Ineos closed its Forties Pipeline System, which transports 40pc of oil and gas from the North Sea to the UK mainland, after finding a fracture in a pipe south of Aberdeen. It expects repairs to take weeks.

The firm has now declared ‘force majeure’ on contracts, formally telling oil producers it cannot transport their oil due to circumstances beyond its control. Yesterday, Ineos said the crack had not widened over the past 48 hours.

The ‘force majeure’ clause helps companies avoid being sued if they cannot fulfil contracts. It has been used during hurricanes and earthquakes. The move sent the price of oil above $65 a barrel for the first time in two years.

An explosion at a gas plant in Austria added to concerns about the UK’s security of supply.