Shell might lift force majeure on Bonny Light crude exports tomorrow

Peter robinson

Royal Dutch Shell might be lifting its months-long force majeure on Bonny Light crude exports in Nigeria’s Niger Delta latest by Wednesday (tomorrow).

It would be recalled that in July, Shell declared the force majeure after the Nembe Creek Trunk Line was shut down, one of two pipelines transporting the grade.

Reuters said the trade was limited with Eni offering cargoes of Nigerian Brass River and Angolan Palanco, one of the last from the August Angolan programme.

Shell resumed Forcados exports at the end of May after a nearly complete shutdown since February 2016. The grade’s operator, Shell’s local subsidiary SPDC, issued an initial June schedule of 197,000 bpd before increasing it to 252,000 bpd.

The resumption cemented Nigeria’s return to the status of Africa’s largest oil exporter, a title it lost to Angola following militant attacks on oil infrastructure in the oil-rich Niger Delta region during 2016.

According to Reuters News, a source said it could be lifted as early as Wednesday. A loading programme has yet to be issued, a trader said.

Reuters reported that offers of Nigerian crude were moving lower. Statoil was offering Usan on a delivered basis at dated plus $1.60, down 5 cents from a similar offer on Monday.

Reuters reported that Forcados was offered at dated plus $1.90, while a trader put the value 40 to 50 cents below that.

However, Forcados shipments appear to be delayed. One trader said there were delays of 4-5 days.