Nigeria’s oil export to rise in August
Indications are pointing towards a rise in Nigeria’s oil export come August.
On Thursday, Shell said it had lifted a force majeure on exports of Bonny Light crude, the latest sign that oil production is recovering after militant attacks in the Niger Delta.
The force majeure was lifted from 09:00 a.m. Nigerian time (0800 GMT) following restoration of production into Bonny Terminal.
Nigeria’s oil production has refused to totally cave in despite some of the worst militant attacks.
Oil prices rose during the attacks, which briefly pushed production to 30-year lows. Nigeria was Africa’s largest oil exporter, but slipped into second place behind Angola earlier this year due to disruptions from militants.
Still, some fields recovered quickly, steading exports from April into May, according to reports.
Bonny Light exports had continued during the force majeure, a legal declaration made on May 11 following the closure of the Nembe Creek Trunk line.
However, cargo loadings are expected to run without hindrance now that it has been formally lifted.
Global energy data company, Platts, also disclosed that Nigeria’s Qua Iboe crude oil grade, stood at a $0.90 per barrel premium to Bonny Light, the highest since October 2013.
Platts in a report, said the premium had risen as a result of Qua Iboe returning from a month-long force majeure in June and a 30-day ceasefire between the Niger Delta Avengers and the government early in July that restored confidence in the Qua Iboe crude.
The report stated that buyers have started showing interest in Qua Iboe since the provisional August programme was released on June 27.
A number of the grades that are similar in quality to Qua Iboe are currently under force majeure or have production issues and with the ceasefire that was agreed two weeks ago, buyers are keen to get their hands on Qua Iboe,” the report quoted a source as saying.
“We also need to keep in mind that Qua Iboe was not under force majeure because of a militant attack but because of an accident unlike the other grades, which are all out due to sabotage. This does also impact a buyer when considering which crude to source,” a trader explained.
The report noted that during the first half of 2016, Qua Iboe’s premium over Bonny Light ranged between $0.40 per barrel in March and $0.15 per barrel in early May, showing that the current premium is 50 cents per barrel above this year’s previous high.
According to the report, on average, Qua Iboe had exported 9.9 million barrels of crude in 2016 alone, averaging just under 11 cargoes a month, while Bonny Light exported 6.1 million barrels on an average, or around 6.5 cargoes a month, when not under force majeure.
L-R: Mrs Akanji Bola, Beneficiary of the Aliko Dangote Foundation
donation to victims of communal clash in Ile-Ife; Emir of Kano, Sanusi
Lamido Sanusi; His Imperial Majesty, , Ooni of Ife, Oba Adeyeye Enitan
Ogunwusi; MD/CEO and Aliko Dangote Foundation, Zouera Youssouffou at
the Aliko Dangote Foundation donation ceremony to victims of communal
clash in Ile-Ife held at the Ooni of Ife’s palace on Monday.
L-R: Hannah Oyebanjo, Managing Director Redwood Consulting, Sir
Ademola Aladekomo, Chairman Smart City, Lagos and Taiwo Oyewole,
General Manager Techplus at the TechPlus 2017 in Lagos.
L – R: Clifford Akpolo, Digital Marketing Manager, The Nigerian Stock
Exchange (NSE); Pai Gamde, Ag. Head, Corporate Services Division, NSE;
Simisola Bolatito Ogunleye, singer, songwriter, vocalist, a Celebrity
at 2017 NSE Corporate Challenge; Olumide Orojimi, Head, Corporate
Communications, NSE and Boluwatiwi Omidiji, CSR Analyst, NSE at the
Closing Gong Ceremony in commemoration of 2017 NSE Corporate Challenge
at Exchange Friday.
L-R: Adedapo Adelegan, President, Nigerian British Chamber of
Commerce/speaker; Anna Einarsson, Chief Executive Officer, Tribute;
Sola Obabori, Group Managing Director, Red Star Plc, and Paul Foh,
Chief Executive Officer, Katalyst Consulting, during the Red Star 2017
SMEs 1000 Forum in Lagos at the weekend.
