Hope for early restoration of the country’s crude oil output was dashed yesterday as Shell Petroleum Development Company (SPDC) said that it had extended the force majeure it declared on Forcados crude oil exports for March and April to cover May loadings.
According to the initial loading schedule, the force majeure declared on March 7, 2009 would end in April while the oil major had planned to load up to eight cargoes of 950,000 barrels each in May, equivalent to around 245,000 barrels per day.
However, a company spokesman said that most of the loadings were deferred due to the extension of the force majeure.
Forcados is one of Nigeria’s benchmark crude oil grades that is highly prized by foreign refiners due to its relatively low carbon content.
Shell spokesman, Mr. Precious Okolobo, told THISDAY yesterday that the extension of the force majeure followed a security situation in the Niger Delta, which necessitated a change to planned pipeline repairs.
“We extended the Forcados force majeure to cover May. This extension followed a revision of the Trans-Escravos pipeline repair schedule due to the security situation in the field.”
Okolobo did not comment on June loadings but THISDAY gathered that there is no change yet to the force majeures on exports of Bonny Light crude oil; 115,000 barrels per day EA crude or on gas supply for Nigerian Liquefied Natural Gas (NLNG) Limited.
Royal Dutch Shell on April 14 said its Nigerian joint venture; SPDC had declared force majeure on the country’s Bonny Light crude oil exports in April and May.
A shell spokesman said the force majeure was as a result of the recent production shut-in from the fire on Bomu manifold on the Trans Niger Pipeline in Eastern operations.
Prior to the force majeure an estimated 200,000 barrels per day of Bonny Light was shut in.
This previous force majeure on Bonny Light crude oil exports remains in place.
Shell had earlier on February 12, 2009, declared force majeure on Bonny Light shipments, affecting the remainder of February and March offtakes with some deferred to April.