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Economy

Nigeria's oil exports surge threatened by abductions, outages

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The incidents in Nigeria add to a long list of supply curbs globally among both OPEC+ members.

Wednesday 01, May 2019

(Bloomberg) --A spate of disruptions and security concerns, including kidnappings, are threatening to hinder surging Nigerian oil exports.

Royal Dutch Shell and Total declared force majeure on some of their Nigerian exports over the past week, a measure that allows companies to skip supply obligations. Chevron’s Nigerian unit said an idled well was interfered with.

While the precise cause of the Total force majeure remains unclear, the Shell and Chevron incidents involved third parties. The disruption comes just a few years after militants caused Nigeria’s oil production to plunge by attacking pipelines and other pieces of energy infrastructure.

Last week, two foreign workers were abducted from an onshore oil rig owned by Niger Delta Petroleum Resources. Separately, two Shell workers were kidnapped and their police escorts killed as they were driving in Rivers state.

Cheta Nwanze, an Analyst at SBM Intelligence, said, “The attacks and disruptions are a general commentary on the state of insecurity in the country.”

Nigeria struggled to restore output in the wake of militant attacks in 2016, but exports of crude and condensates are set to reach a 22-month high of 1.997 million barrels a day in June.

Shell said its exports through the Bonny terminal were affected following the closure of the Nembe Creek trunkline, which feeds into it, following a fire. Total said it could not meet its Amenam oil field exports due to a production issue.

 

TAGS : NNPC, Nigerian oil exports, Royal Dutch Shell, Total, Chevron, Niger Delta Petroleum Resources, Amenam oil field

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