• 9 hours Russia Approves Profit-Based Oil Tax For 2019
  • 13 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 15 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 17 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 19 hours Aramco In Talks With Chinese Petrochemical Producers
  • 20 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 22 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 1 day Bidding Action Heats Up In UK’s Continental Shelf
  • 1 day Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 8 days Rosneft Announces Completion Of World’s Longest Well

Forcados Shut-In Dashes Nigeria’s Hopes Of Raising Oil Output In 2016

Forcados

Just as Nigeria was starting to gradually increase its oil production over the past two months, fresh attacks on the Forcados pipeline earlier this month have dragged output down again, lessening the country’s chances to see its crude production materially increase this year.

Militant violence had slowed down over the past months, but with Forcados out again – just two days after it had reopened following an attack in July, Nigeria’s output will be down again, according to market sources quoted by Platts on Friday.

S&P Global Platts has estimated that Nigeria’s oil production increased to some 1.84 million bpd, including the Akpo condensate grade, in October. However, with Forcados – with production of between 150,000-200,000 bpd – out, the country’s total output would plunge for the remainder of 2016.

Last week, Nigeria’s most notorious militants sabotaging oil infrastructure, the Niger Delta Avengers (NDA), said they bombed the Trans Forcados pipeline in the third attack in just a week on the pipeline that carries crude oil from the delta to the Shell-operated terminal of the same name.

Forcados production was impacted more than initially thought it would be, and it is very likely that exports of the Forcados grade will be offline until early into 2017, trading sources told Platts.

An oil spill caused by a militant attack has been affecting the transportation of the crude oil, and has been hampering repairs.

According to Platts, a spokeswoman for Shell has declined to comment on the oil spill, but confirmed that Forcados was still under force majeure.

OPEC’s secondary sources put Nigeria’s crude oil production in October at 1.628 million bpd, up by 170,200 bpd from September. Commenting on the October production of OPEC and its members, the cartel said in its Monthly Oil Market Report released last week:

“Crude oil output increased the most in Nigeria, Libya and Iraq, while production in Angola showed the largest decline.”

With Forcados out, output in Nigeria would surely drop in November and December—a de facto production cut for OPEC, if you will, and perhaps a lucky break for the struggling cartel.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News