Nigeria' s oil production rises to 2.4 million bpd
BY SARAH KENT
LONDON -- Nigeria' s oil production has risen to 2.4 million barrels a day thanks to efforts to crack down on oil theft and vandalism, the country' s state oil company said.
Widespread incidences of oil theft and vandalism have significantly dented Nigeria' s oil production this year. According to the Nigerian National Petroleum Corporation, or NNPC, criminal activity forced the shut-down of three major trunklines, shutting in 400,000 barrels a day of oil.
There are signs that production is returning to normal. Earlier this month, Eni SpA removed a force majeure on its exports of Nigerian Brass River crude that had been in place since March. Shell Petroleum Development Company, Royal Dutch Shell PLC' s Nigerian subsidiary, also partially lifted a force majeure on its exports of Bonny Light on Aug. 30 after it successfully repaired its Nembe Creek Trunkline.
However, continued incidents of theft damage prospects for a long-term recovery in production. SPDC said last week that fresh damage caused by thieves had forced it to shut Nembe Creek once more on Sept. 6 and that it had also shut its Trans Niger Pipeline after reports on Sept. 18 of a leak caused by theft.
A force majeure is declared when a company is unable to fulfill its contractual obligations to deliver crude due to circumstances beyond its control.
Dow Jones Newswires