• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 4 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 1 day Iran Captures British Tanker sailing through Straits of Hormuz
  • 18 hours Renewables provided only about 4% of total global energy needs in 2018
  • 8 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 2 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Today in Energy
  • 2 days Berkeley becomes first U.S. city to ban natural gas in new homes
  • 1 hour Shale Oil will it self destruct?
  • 22 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 4 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 3 hours N.Y. Governor Signs Climate Bill
  • 38 mins U.S. Administration Moves To End Asylum Protections For Central Americans
  • 3 days LA Solar Power/Storage Contract
  • 3 days Why Natural Gas is Natural

Sabotage Of Nigerian Pipeline Causes Force Majeure

Oil

Nigerian firm Aiteo Oil Exploration and Production Company, has discovered that sabotage was the cause of the fire that caused Nigeria’s oil production to fall 8% per day, creating a force majeure. All six saboteurs, The Joint Military Task Force said on Wednesday, had been killed in the blaze.

The Nembe Creek Trunk Line, with a capacity of 150,000 barrels per day, was shuttered following the fire that has now been linked back. The pipeline carries oil from the eastern Niger Delta to the Bonny Export Terminal.

This is the second shutdown of the pipeline in as many months, after an explosion from a well head in Nembe Creek resulted in a separate fire.

Aiteo said it had repaired the breach, but did not disclose whether the oil was flowing again at normal rates.

Despite the force majeure which remains in effect, preliminary loading programs showed on Wednesday that four major Nigerian crude oil grades will see an uptick in exports in June, according to Reuters. The largest increase will come from its Forcados grade, which will see June loadings of 230,000 bpd, up from 127,000 bpd in May.

In total, Reuters data shows, the four Nigerian grades will see a 155,000 barrel-per-day export increase in June over May.

Nigeria has had a long and painful history with militants disrupting the country’s oil flows, but recent months has seen relatively stability in production levels between 1.723 and 1.733 million barrels per day, according to OPEC’s Monthly Oil Market Report.

The production stability for the African nation this year comes as its breakeven costs fell to just US$23 per barrel, according to Nigerian Petroleum Minister Emmanuel Ibe Kachikwu, who added that the goal is to reduce this per barrel cost further to US$15 per barrel.

By Julianne Geiger 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
Download on the App Store Get it on Google Play