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Crude exports may rise as Shell lifts force majeure on Bonny Light

Nigeria’s crude exports may rise above projections according to loading programs released for the month of August.

Exports were expected to drop from 1.796 million barrels per day (bpd) in June to 1.43 million bpd in July, partly due to the force majeure by Shell Petroleum Development Company (SPDC) on the Bonny Light crude grade.

The force majeure which lasted for almost two months was lifted on Friday according to a statement by Bamidele Odugbesan, a spokesman for SPDC.

“The force majeure on Bonny Light crude exports was lifted following the repair and reopening of the Nembe Creek Trunkline by the operator, Aiteo Eastern Exploration &Production Company Limited,” Odugbesan said.

The oil major said repairs had been carried out on the Nembe Creek pipeline, a major pipeline transporting the crude grade to the export terminal.

The Nembe Creek Trunkline transports 150,000 bpd of the crude grade to the terminal that Shell operates and is one of two main pipelines that transports Bonny Light to the export terminal.

The shutdown of the Nembe Creek pipeline had led to the accumulation of unsold crude of up to 250,000 bpd, thereby boosting the pricing of other crude grades such as Qua Iboe and Forcados.

According to loading schedules, exports of Forcados grade were projected to increase from 195,000 bpd in July to about 259,000 bpd in August.

Oluwatoyin Bayagbon :