Shell has deferred exports of about 6.3 million barrels of Forcardos crude grades from Nigeria to August.
This, according to sources, followed the company’s inability to fulfil its contractual obligations to refineries abroad and other consumers on supply of the crude grade for July loading.
The deferment of exports was based on Shell’s readiness to begin full-capacity exports at its Forcados terminal, which has been shut since May 5.
The company’s subsidiary in Nigeria, Shell Petroleum Development Company (SPDC), announced Tuesday that its Joint Venture (JV) had lifted the force majeure on the crude oil stream, which has been in effect for over two months.
The force majeure, in place for more than two months, was lifted, according to the company, after it had completed the repairs on the NPDC operated Trans Forcados Pipeline.
“The Shell Petroleum Development Company Joint Venture lifted the force majeure on exports from Forcados Terminal effective 18:00 Nigerian time yesterday, July 13, 2015,” Shell said in a statement.
“This followed the completion of repairs on the NPDC-operated Trans Forcados Pipeline.”
The company declared force majeure on May 5 following “a series of leaks” in the Trans Forcados pipeline that brings the oil to the export terminal.
“Traders however said on Tuesday that the several cargoes from the original plan of exports for Forcados crude in July included seven cargoes with a total of 6.3 million barrels had already been deferred to August as a result of loading delays.
An overhang of light sweet crudes in the Atlantic Basin has depressed differentials to dated Brent and limited the impact of recent supply disruptions on some West African crude oil grades.
Six oil and gas exploration and production (E & P) companies, including SPDC, Seplat, Pan Ocean, and Nigerian Agip Oil Company, deliver crude oil to the Forcados Export Terminal in Delta State, through the Trans -Forcados Pipeline.
The Trans-Forcados Pipeline, which is used by E&P companies operating in the Western Niger Delta to transport crude oil to the 400,000 barrels per day capacity Forcados export terminal, has been the target of attacks by vandals.
Since the most recent acts of vandalism at five different points on the Trans- Forcados Pipeline were reported on January 6, the affected companies have not been able to ramp up production.
SEPLAT Petroleum Development Company Plc, which owns 45 percent stake in Oil Mining Leases (OMLs) 4, 38 and 41, and operates these leases under a joint venture with the Nigerian Petroleum Development Company (NPDC), is one of the companies that suffered outage as a result of the vandalism.
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