NNPC, NIGERIA’S OIL BEHEMOTH RECORDS N547BN LOSSES IN THREE YEARS

abandon a multibillion-dollar gas project in Iran if it could not secure a waiver from U.S. sanctions, casting further doubt on the European-led efforts to salvage the nuclear deal.

Reuters reported that a rapid decline in Venezuela’s crude production has further roiled markets in recent months.

Also global inventories of crude oil and refined products dropped sharply in recent months owing to robust demand and OPEC-led production cuts.

Oil stocks are expected to drop further as the peak summer driving season nears, offsetting increases in U.S. shale output, according to reports.

In Nigeria also, shipments of Bonny Light crude were suspended yesterday, after an outage prompted Shell to declare force majeure.

The force majeure, which took immediate effect, followed the shutdown of the Nembe Creek Trunk Line.

Though Shell did not disclose the volume of oil affected by the force majeure, exports of Bonny Light were expected to run at around 195,000 barrels per day in June.

The Nembe Creek Trunkline, operated by Aiteo E & P, and the Trans Niger Pipeline (TNP) are the two major pipelines used by Shell and other producing companies operating in the eastern Niger Delta to pump crude oil to the Bonny export terminal in Rivers State.

An official of Aiteo, who spoke off the record, told THISDAY yesterday that the company noticed a drop in pressure, prompting the shutdown.

“We are suspecting sabotage but it is too early to conclude as investigation is still ongoing,” he added.

In the western Niger Delta, the Trans-Forcados pipeline (TFP), operated by Heritage Oil, was shutdown after a leak was found on the facility on May 7.

The TFP is the major trunk line in the Forcados Pipeline System with an export capacity of 400,000 barrels per day and the second largest network in the Niger Delta after the Bonny pipeline system in the eastern Niger Delta.

International oil companies (IOCs) and Nigerian independents operating in the western Niger Delta lose 250,000 barrels per day to the closure of the TFP.

Shell has not yet declared force majeure on exports of the Forcados crude grade.