(3 MINUTES READ)
· Nigeria is hoping for improved production of oil thanks to lifting of force majeure on crude exports by Shell Petroleum Development Company of Nigeria (SPDC) from Bonny Light terminal
· The stoppage of production was due to repairs to set right a leaking pipeline
· Shell had declared force majeure last month following a leak on the 150,000 b/d Nembe Creek Trunk Line (NCTL). It is one of two pipelines that feeds crude to the Bonny Light terminal
Nigeria is hoping for improved production of oil thanks to lifting of force majeure on crude exports by Shell Petroleum Development Company of Nigeria (SPDC) from Bonny Light terminal. The stoppage of production was due to repairs to set right a leaking pipeline.Shell had declared force majeure last month following a leak on the 150,000 b/d Nembe Creek Trunk Line (NCTL). It is one of two pipelines that feeds crude to the Bonny Light terminal.
Production of oil was hampered throughout the second half of this year. The disruption was spilled over to several other terminals, including Qua Iboe, Forcados, Erha and Brass River. Nigeria’s oil production in the last few months has been below budgetary benchmark. It dropped to 1.37 million barrels a day in October, 261,000 bpd below its OPEC+ quota.
Nigeria’s production challenges appear in oil is unabated. Its ongoing amnesty and other measures to address crude theft in the Niger-Delta region did not have much impact. The federal government has spent over N32 billion between January and July on pipeline security and maintenance cost,.
The report of the Organisation of Petroleum Exporting Countries (OPEC) also revealed that Nigeria’s rig count slumped to nine from 11. The operational problems have left Nigeria falling short of its OPEC+ production ceiling in recent months. Now, the repair has been completed and pipeline operations have resumed, enabling Shell to lift force majeure on 22 November. Three Bonny Light shipments are scheduled for December and three more in January. Traders maintain that Shell is likely to revise next month’s program.
