Shell Lifts FM on Bonny Light Oil Exports

Shell said that its subsidiary, Shell Petroleum Development Company of Nigeria (SPDC), lifted the force majeure (FM) on Bonny Light crude oil exports effective 9am Nigerian Time on July 7, 2016 following restoration of production into Bonny Terminal. The FM had been in force since early May 2016.

But a Shell spokesperson noted that force majeure at SPDC's Forcados crude oil export terminal, in place since February 2016, remains in place. Typical Forcados exports were about 250,000 b/d and those from Bonny Light were some 210,000 b/d.

Force majeure is understood to remain in place since May 2016 at Eni's Brass River and ExxonMobil's Qua Iboe crude oil export terminals too; both are of a similar size to the two Shell terminals.

The IEA's June 2016 Monthly Oil Report said that militant action in Nigeria has forced oil production "down to thirty-year lows", estimating May 2016 Nigerian crude supply at 1.37mn b/d, compared with an average 1Q 2016 of 1.76mn b/d. It has listed the reduction among the reasons for the strong oil price.

Militant attacks have also targeted gas supply pipelines in the Niger Delta, which has impacted power generation both inside Nigeria, and in neighbouring Ghana.

The head of Ghana's state Volta River Authority, Isaac Kirk Koffi, told NGA last month that a cut-off in gas deliveries from Nigeria was less because of debts owed by Ghana, including VRA, and more because of "sabotage [as] their lines have all been blasted."

In separate news this week, Shell signed an memo of understanding with Equatorial Guinea, which may involve work to develop a Gas Master Plan for the country. For more details, click here.

Mark Smedley | www.naturalgaseurope.com | www.naturalgasafrica.com