Nigeria's oil production rises to 2.4 million bpd

9/23/2013

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

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