Nigeria’s FG to Raise Crude Oil Export in Dec

Nigeria’s FG to Raise Crude Oil Export in Dec

The Federal Government is to increase exports of Nigeria’s benchmark crude oil grade, the Qua Iboe, in December by selling 13 cargoes up from the 11 scheduled to load in November in a bid to shore up the country’s sagging economy.

The move to raise Nigeria’s crude oil export came just as former BP Plc’s Chief Executive Officer, Mr. John Browne’s Riverstone Management Limited, is leading a group of bidders for $4 billion worth of Nigerian oil fields being offered for sale by Royal Dutch Shell Plc.

Trade sources hinted last weekend that all 13 of the December stems would be full cargoes of 950,000 barrels each, bringing Qua Iboe exports to their highest level since March.

Reuters reported that the development would bring the average exports of the grade in December up to almost 400,000 barrels per day (bpd), compared with just below 350,000 bpd in November. Qua Iboe output was reduced for three months due to a pipeline leak, which led ExxonMobil to declare a force majeure on exports last May.

The force majeure was lifted in August but some cargoes have continued to be delayed, traders and shipping sources said.
Qua Iboe exports were expected to average around 398,000 barrels per day (bpd) in October, up from around 363,000 bpd planned for September, loading programmes had shown.

Output schedules for two of Nigeria’s other crude streams also emerged in September with Bonga exports due to rise to 189,000 bpd in October, up from the 158,000 bpd due in September.

Forcados output was due to average 197,000 bpd this month, largely steady from the previous month.
Preliminary loading schedules put the country’s crude export at 2.07 million barrels per day (bpd) of crude oil in November, down slightly from about 2.13 million bpd in October.

A total of 70 full or part cargoes of the nation’s crude oil were expected to load in November, down from 76 cargoes in October, trade sources said, quoting preliminary loading schedules.

The source also stated that Bonny Light output would average 285,000 bpd in November, up from 245,000 bpd planned in October and below 130,000 bpd earlier this year, due to repairs to sabotage oil facilities in the Niger Delta region.

Bonny Light production peaked at nearly 500,000 bpd in 2005, when it accounted for nearly a fifth of the total crude output as production of the gasoline-rich crude has long been hampered by militant sabotage of pipelines and platforms in the Delta region.

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