Nigeria missing 700,000 bpd of oil output from militant attacks

In Oil & Companies News 28/07/2016

Nigeria’s oil production is now 700,000 barrels per day (bpd) lower as a result of persistent militant attacks on oil pipelines and infrastructure, according to state oil company NNPC.

The militant group Niger Delta Avengers has claimed most of the strikes, which continued even during a one-month ceasefire announced by the government in late June. Other groups have also claimed attacks.

The groups have primarily targeted pipelines belonging to oil majors Shell, ENI and Chevron, NNPC itself, and Nigerian company Aiteo.

The Avengers claimed to have hit an ExxonMobil pipeline connected to the country’s largest crude oil stream, Qua Iboe. Exxon denied any attack, but declared force majeure shortly thereafter due to a “system anomaly.” The company had yet to issue a revised loading programme.

“As one terminal comes back online, another goes offline, analysts at Barclays wrote in a note, adding that “with militants wanting a greater share of the country’s oil wealth, outages are likely to prevail until any agreement can be made.”

In addition to Qua Iboe, Forcados and Brass River are also under force majeure, while Escravos and Bonny Light are facing significant loading delays.

Below is a table listing all Nigerian grades and outlining those affected by pipeline disruption and militancy, based on information from the companies, oil traders, Nigeria’s oil minister and Reuters estimates.

Oil output at each field varies daily. Average production is around 2.2 million bpd.

 Grade       Maximum     Issue         Production  Expected
             production                impact on   return
             (bpd)                     field       
                                       (bpd)       
 Abo         25,000                                
 Agbami      240,000                               
 Akpo*       175,000                               
 Amenam      75,000                                
 Antan       50,000                                
 Bonga       225,000                               
 Bonny       350,000     Trans Niger   up to       No estimate
 Light                   Pipeline,     200,000     available
                         one of two                
                         serving                   
                         Bonny Light,              
                         closed since              
                         June 8.                   
                                                   
                         Outages on                
                         other minor               
                         lines                     
 Brass       120,000     Force         up to       No estimate
 River                   majeure and   100,000     available
                         several                   
                         attacks on                
                         pipelines                 
                                                   
                                                   
 EA          35,000                                
 Ebok        30,000                                
 Erha        135,000                               
 Escravos    200,000     DECREASED     up to       No estimate
                         PRODUCTION -  100,000     available
                         following     bpd,        
                         militant      according   
                         attacks on    to          
                         oil           traders.    
                         wells[nL5N18  No force    
                         25W8][nL8N18  majeure in  
                         T4UH]         place       
                                                   
 Forcados    330,000     FORCE         Full        Pipeline
                         MAJEURE -                 repairs
                         pipeline                  extended
                         repairs                   until at
                         ongoing                   least
                         until at                  August[nL8N1
                         least August              A83D3]
                         after                     
                         militant                  
                         attacks in                
                         February,                 
                         June                      
                                                   
                                                   
 Okono       25,000                                
 Okwori      20,000                                
 Okwuibome   30,000                                
 Oyo         4,000                                 
 Pennington  20,000                                
 Qua Iboe    350,000     Force         Full        Pipeline
                         majeure                   repairs
                         after                     expected to
                         "system                   take one to
                         anomalies"                two months
                                                               
 Usan        120,000                               
 Yoho        65,000                                
 Total       2.6                       up to       
             million                   966,000

Source: Reuters (Reporting by Julia Payne and Libby George; Editing by Elaine Hardcastle)