“[W]ith militants wanting a greater share of the country’s oil wealth, outages are likely to prevail until any agreement can be made.” – Barclays
LONDON (Reuters) – Nigeria’s oil production is now 700,000 barrels per day (b/d) 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.