Nigerian liquids production rises to 1.9mn b/d

OREANDA-NEWS. July 04, 2016. Nigerian crude and condensate output has risen to around 1.9mn b/d, according to Argus estimates, following a lull in violence against oil infrastructure in the producing Niger delta region.

The IEA said last month that Nigeria's crude output fell to 1.37mn b/d in May, its lowest level since 1988, as a result of a wave of attacks on oil pipelines by rebel group the Niger Delta Avengers (NDA), which is demanding greater investment in the delta.

Force majeure remains in place on three key Nigerian export grades — Bonny Light, Brass River and Forcados. The latter has been completely shut in since February, when the NDA sabotaged the main Forcados export pipeline that was pumping around 250,000 b/d at the time. But output is gradually returning to normal, with no attacks reported since 15 June. Nigeria's oil minister Emmanuel Ibe Kachikwu said talks between the Nigerian government, rebel groups and host oil and gas communities in the Niger delta were making progress.

July loading dates for Erha have finally emerged, adding four 1mn bl cargoes to the export programme, bringing July shipments of Nigerian crude to around 1.76mn b/d on 57 cargoes. The Erha programme has been repeatedly delayed in recent months, with operator ExxonMobil in dispute with Nigerian state oil firm NNPC about the latter's entitlement.

Nigeria's 125,000 b/d capacity Warri refinery and 210,000 b/d capacity Port Harcourt refinery are both operating after intermittent shutdowns, although at well below capacity.