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Oil Report

FACTBOX-Nigerian crude oil production outages

 LONDON, Feb 4 (Reuters) - Nigeria has at least 800,000
barrels per day (bpd) of crude oil shut in, more than 25 percent
of its capacity, mainly due to sabotage attacks on oil
facilities, according to oil companies and industry sources.
 Below are details of the latest disruptions to Nigerian oil
production:
 
 * Facilities operated by Royal Dutch Shell RDSa.L have
been the worst affected by militant attacks. On Sunday, Shell
said it had shut down three pumping stations in Nigeria's Niger
Delta after a key crude oil pipeline was sabotaged.
[ID:nLDE60U0KC] 
 
 * On Thursday, Shell's Chief Financial Officer Simon Henry
said a 150,000 bpd of production had been cut following recent
attacks. Traders said this impacted production on the Forcados
oil stream, which was already suffering delays. [ID:nLDE6131L0] 
 
 * Shell has a force majeure in place on its Forcados oil
exports, which has been in force on and off since 2006 due to a
spate of sabotage attacks. Force majeure legally protects oil
companies if they are unable to meet contractual deliveries to
clients due to actions beyond the company's control.
 
 * Shell was able to lift its force majeure on Nigeria's
benchmark Bonny Light BFO-BON oil in September last year but
production remains well below capacity. Bonny Light exports were
around 120,000 bpd in January, according to loading programmes,
compared with average production of nearly 500,000 bpd in 2005.
 
 * Production of Okono crude oil, operated by state-run
Nigerian National Petroleum Corporation (NNPC), is currently
suffering delays. Traders said the outage was around 60,000 bpd.
 
 * Nigerian crude output had been due to hit a six-month high
of over 2 million bpd in January, which had raised expectations
that President Umaru Yar'Adua's recent amnesty was helping
production to recover. [ID:nLDE6121QP] 
 However, according to preliminary loading schedules, Nigeria
will load only 1.79 million barrels per day (bpd) of crude oil
in March, due to recent outages, suggesting production recovery
has stalled.
 
 * The following table provides a breakdown of the main
output cuts in bpd as provided by oil companies and industry
sources.
 * All affected projects are joint ventures between 
state-run Nigerian National Petroleum Corp. (NNPC) and foreign
oil majors.

Field             Operator     Output Outage     Latest Shut In
Bonny Light       Shell           300,000             Mar 2009
Brass River       Eni              40,000             Jun 2009
Forcados          Shell           400,000             Jan 2010
Okono             NNPC             60,000             Jan 2010
Total               -             800,000
 (Reporting by Joe Brock; editing by James Jukwey)
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