..as Brent price dips to $75.07/bbl
By Prince Okafor
Shell Petroleum Development Company oNigeria Limited, SPDC, operator of the SPDC Joint Venture has lifted the force majeure on Bonny Light exports, one of the country’s major sources of oil revenue.
Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.
According to the Spokesperson of the company, Bamidele Odugbesan, “The force majeure on Bonny Light exports was lifted, following the repair and re-opening of the Nembe Creek Trunkline (NCTL) by the operator, Aiteo Eastern Exploration and Production Company Limited.
“The SPDC declared force majeure on Bonny Light export on May 17, 2018 following the shutdown of the NCTL by the operator. Please contact the NCTL operator for any enquiries on the reason for the shutdown of NCTL.”
Exports of Bonny Light are expected to run at around 195,000 barrels per day, bpd.
Prior to the declaration of force majeure on Bonny Light exports, the nation’s crude shipments were already witnessing delays following a leak on the 200,000 to 240,000 bpd Trans-Forcados pipeline was shut down in May, effectively cutting deliveries of Forcados, the country’s largest crude grade.
Trans-Forcados pipeline was shut down after a leak was found. Repairs are on-going. About 25 cargoes of June-loading Nigerian cargoes were still available; although traders said around half of that total were held by Total and Shell.
Meanwhile, oil prices dropped yesterday, following concerns about supply disruptions as Libyan ports resumed export activities, while traders eyed potential supply increases by Russia and other oil producers
Brent crude futures were down 26 cents, or 0.4 percent, at $75.07 a barrel, while the U.S. West Texas Intermediate (WTI) crude was down 27 cents, or 0.4 percent, at $70.74 a barrel.
Supply outages in Libya and strike action in Norway and Iraq pushed oil prices higher late last week, although prices still ended down for a second straight week.
“Crude oil prices fell as fears of supply disruptions eased. News that Libya’s state oil producer had restarted output from a major oil field ignited the selloff earlier in the week,” ANZ Bank stated.
The market focus shifted towards possible supply increases, even as a Norwegian union for workers on offshore oil and gas drilling rigs stepped up a six-day strike.