LONDON Nov 5 Royal Dutch Shell (RDSa.L) said on
Wednesday it would not be able to meet all Nigerian crude supply
obligations in November and December following OPEC's decision
to reduce exports.
The Anglo-Dutch oil major was advised by Nigeria, which is a
member of the Organization of the Petroleum Exporting Countries
and bound by the group's output cut decision.
"Following the OPEC decision, NNPC has advised us on
November and December exports. Accordingly, force majeure has
been declared on off-take schedules for November and December,"
a spokesman with Shell said.
"All export programmes have been affected."
Bonny Light has already been under force majeure
indefinitely due to underproduction caused by repeated sabotage
attacks to oil pipelines in the oil rich Niger Delta region.
The spokesman did not specify the reduction volume but just
referred to Nigeria's reduction plan.
The Shell spokesman also did not say if the company would
cancel cargo loadings.
OPEC decided in October to reduce supply by 1.5 million
barrels per day from Nov 1.
State run Nigerian National Petroleum Corp. (NNPC) said last
week the West African producer will reduce its own crude oil
export volumes by 5 percent in November and December and cancel
five November export cargoes .
Trading sources said Exxon Mobil (XOM.N) had cancelled two
Qua Iboe cargoes for November. This was not confirmed by Exxon.
(Reporting by Ikuko Kao)