Nigeria: Shell Loses 120,000bpd to Fresh Attack On Pipeline
Posted to the web 16 May 2007
Chika Amanze-NwachukuLagos
Chika Amanze-NwachukuLagos
An attack at a flow station linked to the Bonny export terminal in southern Nigeria has caused Shell Petroleum Development Company (SPDC) to cut 170,000 barrels per day output as violence escalates in the Niger Delta region.
Consequently, Shell is expected to declare a force majeure on oil exports from the terminal today, implying that the company is unable to meet contractual terms with buyers.
"There was an attack at a flow station. The force majeure will be out today," a sources told THISDAY yesterday, adding, "We have shut in about 170,000 bpd of oil production".
The attack is the latest in a string of militant actions against Nigerian oil production facilities.
Production of Bonny Light, a Nigerian benchmark grade, was expected to average around 308,065 b/earlier in May, according to the export loading programme.
Meanwhile, the continued threat posed by the seemingly unending crisis in the Niger Delta to crude oil production in the country, has been further heightened after US-based drilling company Hercules Offshore Inc. said it was evacuating all its nonessential expatriate workers from Nigeria.
Hercules which operates lifeboats services for offshore operations in the oil sector would be the second major US company to suspend operations in the region in the last one week, coming on the heels of Chevron Nigeria Limited decision to evacuate all non-essential workers from the area.
Consequently, Shell is expected to declare a force majeure on oil exports from the terminal today, implying that the company is unable to meet contractual terms with buyers.
"There was an attack at a flow station. The force majeure will be out today," a sources told THISDAY yesterday, adding, "We have shut in about 170,000 bpd of oil production".
The attack is the latest in a string of militant actions against Nigerian oil production facilities.
Production of Bonny Light, a Nigerian benchmark grade, was expected to average around 308,065 b/earlier in May, according to the export loading programme.
Meanwhile, the continued threat posed by the seemingly unending crisis in the Niger Delta to crude oil production in the country, has been further heightened after US-based drilling company Hercules Offshore Inc. said it was evacuating all its nonessential expatriate workers from Nigeria.
Hercules which operates lifeboats services for offshore operations in the oil sector would be the second major US company to suspend operations in the region in the last one week, coming on the heels of Chevron Nigeria Limited decision to evacuate all non-essential workers from the area.
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