UPDATE 1-Nigerian oil exports to hit 11-month low in March

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Thu Jan 27, 2011 12:33pm EST

* March exports due at 1.91 mln bpd vs 2.01 mln in February

* Lowest Nigerian crude oil exports since April 2010

* Maintenance work hits key production streams, traders say

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By Christopher Johnson

LONDON, Jan 27 (Reuters) - Crude oil exports from OPEC member Nigeria will fall in March to their lowest daily average for 11 months due to maintenance work on several key production streams, trade sources said on Thursday.

Nigeria is set to export around 1.91 million barrels per day (bpd) of crude oil in March, down from about 2.01 million bpd in February and more than 2.13 million in January, the sources said, citing provisional loading programmes.

Nigerian crude oil exports have been at or above 2 million bpd for most of the last year and were last close to the March average in April 2010 when they averaged 1.88 million bpd.

As a member of the Organization of the Petroleum Exporting Countries, Nigeria has an oil production target of 1.67 million bpd but has not been inside that level for almost two years, trade and industry figures suggest.

State producer Nigerian National Petroleum Corp. (NNPC) said on Thursday it was within its OPEC output target and that the country's combined crude and condensate production was currently 2.4 million bpd. It gave no breakdown or details. [ID:LDE70Q1X2]

Nigeria produces significant amounts of condensate, a very light hydrocarbon, which is excluded from the crude export totals and from its OPEC output target.

A total of 67 full or part cargoes of Nigerian crude are due to load in March, compared to 61 cargoes scheduled in the shorter month of February and 72 cargoes in January.

MILITANTS

Cargoes are often added or removed from loading schedules closer to the month of shipment, so actual export volumes may change.

Cargo export dates for Nigeria's largest crude oil production stream, benchmark Qua Iboe, are due to be delayed for up to 10 days in February and several late February cargoes are now due to load in early March.

Eleven full Qua Iboe cargoes of 950,000 barrels and one smaller parcel of 500,000 barrels will load in March after nine in February.

Oil company officials said the Qua Iboe production stream was expected to be affected by repair work, but declined to give details.

The decline also follows signs that a resurgence in violence by militants in the Niger Delta region is curbing supplies.

U.S. energy company Chevron (CVX.N) said in December it had suspended production from a major pipeline after a sabotage attack. Shell's (RDSa.L) output was also hit because of damage to a pipeline caused by oil theft.

Supply of several crude oil grades will be lower in March, including Bonny Light, which will see seven cargoes load, down from eight, and Escravos, which will have four cargoes instead of five.

The Bonga crude oil production stream, which over the last year has exported as much as six full cargoes a month, will see just one cargo load in March.

"Bonga is affected by maintenance, which will kick in around the end of February and last for several weeks," said one West African crude oil trader at an an Asian company. (Editing by James Jukwey)

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