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
Bonny 350,000 Trans Niger up to No estimate
Light Pipeline, 200,000 available
one of two
Brass 120,000 Force up to No estimate
River majeure and 100,000 available
Escravos 200,000 DECREASED up to No estimate
PRODUCTION - 100,000 available
attacks on to
wells[nL5N18 No force
25W8][nL8N18 majeure in
Forcados 330,000 FORCE Full Pipeline
MAJEURE - repairs
repairs until at
until at August[nL8N1
least August A83D3]
Qua Iboe 350,000 Force Full Pipeline
after expected to
"system take one to
anomalies" two months
Total 2.6 up to
Source: Reuters (Reporting by Julia Payne and Libby George; Editing by Elaine Hardcastle)