FACTBOX-Nigerian oil production outages

Wed Jul 1, 2009 11:23am EDT
 
[-] Text [+]
 July 1 (Reuters) - Nigeria has between 600,000 and 700,000
barrels per day (bpd) of oil shut in following sabotage of oil
facilities, according to companies and trading sources.
 * The Movement for the Emancipation of the Niger Delta
(MEND) has been waging an armed campaign against the government
with a series of pipeline bombings, attacks on oil and gas
installations and the kidnapping of industry workers. MEND says
it wants the Delta's resources used to benefit local people.
 * More than 20 percent of the West African country's
installed output capacity of around 3 million bpd has been put
out of action by the attacks.
 * Of the six large established Nigerian crude oil streams
attacked over the last year in the oil-producing Niger Delta,
trade sources say approximately 450,000 bpd of capacity have
been put out of action. Other smaller streams account for the
balance of lost production, they say.
 * State-run Nigerian National Petroleum Corp. (NNPC) said on
June 29 the country was pumping 1.739 million bpd of crude and
560,000 bpd of condensate, or a total of around 2.3 million bpd.
 * Trade sources generally accept this total but say that
NNPC is classing some crude as condensate. The Organization of
the Petroleum Exporting Countries (OPEC) does not set limits on
that form of very light hydrocarbon.
 * Reuters' survey of export loading programmes shows just
over 2.0 million bpd of crude was originally scheduled to load
in July and around 1.64 million bpd in August.
 * Nigeria's implied output limit under the most recent OPEC
production agreement is 1.67 million bpd, so by any measure the
country is producing more than its quota this month.
 * Industry experts say funding problems have also limited
Nigerian oil production dramatically and even when violence in
the oil-rich Niger Delta has been relatively low, the country
has never been able to produce at its full installed capacity.
 
 COMPANIES
 * Royal Dutch Shell (RDSa.L) declared force majeure on its
Forcados oil shipments on March 7 after explosions on a
pipeline. Its Bonny Light BON-BFO exports remain affected by
previous attacks. The company has extended force majeures on
both streams into July.
 * Shell said on June 29 it shut in some production while it
investigated reports of attacks on two well clusters in its
Estuary Field in the western Niger Delta, which feeds into its
Forcados oil export terminal. Trade sources say around 153,000
bpd of Forcados was due to load in July but none has been
scheduled so far for August, probably due to attacks. The crude
oil stream has the potential to export up to about 300,000 bpd
and exported over 290,000 bpd in April. But Bonny Light exports
have recovered over the last two months and now appear to be
down only about 30,000 bpd.
 * U.S. energy company Chevron CXV.N said on May 25 it shut
in approximately 100,000 bpd of oil production from its swamp
operations in Delta state following a strike by militants. MEND
said it was responsible for at least three separate attacks on
Chevron oil and gas facilities in June, but the military denied
some of the attacks occurred and blamed outages on accidents and
other issues. Trade sources say attacks affected the movement of
oil to a local refinery but has not affected exports.
 * Italian energy group ENI (ENI.MI) and its oil unit Agip
said an attack on a pipeline linking production centres to the
Brass River export terminal halted production of around 33,000
bpd of oil and 2 million cubic metres of gas per day. The
Italian firm declared force majeure on crude oil exports from
Brass River on June 23. But traders say output of Brass River
appears mostly to have been restored and seven full or part
cargoes are due to load in August from the terminal.
[ID:nLU268325]
 
 * The following table is a breakdown of production cuts in
bpd as provided by oil companies and by industry sources.
 * All affected projects are joint ventures between state-run
Nigerian National Petroleum Corp. (NNPC) and other oil majors,
primarily Shell.
 
 Field             Operator     Output Outage     Latest Shut In
 Bonga             Shell            30,000             Jun 2008
 Bonny Light       Shell            30,000             Mar 2009
 Brass River       Eni              30,000             Jun 2009
 EA                Shell            32,000             Jly 2006
 Escravos          Chevron          30,000             May 2009
 Forcados          Shell           300,000             Jly 2009
 Total               -             452,000                 -
 (Reporting by Christopher Johnson; editing by James Jukwey)

 

More News

Mexico plans to build new refinery in Hidalgo state
Wednesday, 12 Aug 2009 09:11pm EDT 
Kuwait foils Qaeda plan to attack oil refinery
Wednesday, 12 Aug 2009 09:18am EDT 
IEA trims 2010 oil demand growth, recovery patchy
Wednesday, 12 Aug 2009 06:25am EDT 
OPEC sees demand for its oil falling further
Wednesday, 12 Aug 2009 02:27am EDT 

Featured Broker sponsored link

Editor's Choice

A selection of our best photos from the past 24 hours.  Slideshow 

Most Popular on Reuters

  • Articles
  • Video