Nigeria’s oil exports to peak in December

27 October 2012, Sweetcrude, LONDON – NIGERIA’s oil exports in December are expected to reach the highest level since May, pointing to a swift recovery of production after floods knocked out a fifth of the output in the top African producer.

Nigeria is expected to ship 2.12 million barrels per day of crude oil onto the market in December, unchanged from volumes in November which hit a six-month high, Reuters reports.

The nation’s industry regulator, the Department of Petroleum Resources, said last week the country lost around 500,000 barrels per day of output due to severe flooding in recent weeks.

Combining with damage caused by oil theft, the flooding prompted Royal Dutch Shell to declare force majeure on two of the country’s major crude streams – Bonny Light and Forcados – last week. A force majeure allows a company to suspend contractual obligations in the face of unexpected events.

On Thursday, traders reported longer delays of around 10 days on the Forcados grade compared with 5 days earlier this week. Shell has not given a date for lifting its force majeure.

Nigeria’s high quality light, sweet oil is exported to Asia, Europe and the United States and the recent disruptions could amount to about 0.5 per cent of global supplies.

The latest export figure of 2.12 million bpd includes a Forcados grade shipping list which was delayed due to uncertainty about exports. Provisional loading schedules are subject to minor changes but this programme indicates that a provision 76 cargoes will load in December.

While shipments of Forcados in December are still lower versus previous months at 150,000 barrels per day, this is offset by higher volumes of Qua Iboe and Okono, the shipping list shows.

Qua Iboe will load 13 cargoes in December compared to 12 in November and Okono will load three compared to one the previous month.

Oil producer Maurel & Prom said on Thursday that it planned to restart its OVHAR site by Friday after a fire resulted in a 19-day shutdown but planned to restart the facility by Friday.

The fire caused one death and 10 injuries among workers hired by an unnamed third-party contractor to perform planned maintenance, according to the company.

The site is linked to the Trans-Forcados pipeline.

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  • It really isn’t healthy for any government to run a mono economy and have its citizens remain solely dependent on the fortunes of one export item for their economic well being. The Nigerian government must consciously seek ways and means of diversifying the economy to spare the people whatever challenges that may arise regarding the exploration and production of hydrocarbons.