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Nigeria to lose N131.13bn to Qua Iboe shut-in

By on July 27, 2016

EXXONMOBIL the operators of Qua Iboe terminal, which is expected to remain shut in for another month, will see Nigeria losing more than N131.13 billion. The projections for the Qua Iboe, is pegged at N2.79 billion daily, with a stable crude oil stream and exports usually more than 300,000 barrels per day.

According to a source at the company, the pipeline feeding the Qua Iboe export terminal, the exports of Qua Iboe grade of crude oil, will remain under force majeure for at least one month. The company had last week denied claim linking attacks by the militant group, Niger Delta Avengers, NDA, but the Avengers had stated that it bombed the company’s 48-inch Qua Iboe crude oil export pipeline on July 11. But 24 hours after the claim by the militants, the company’s spokesperson, Todd Spitler, debunked the claim, saying “there was no attack on our facilities.”

However, a source told Reuters this week that the pipeline lost pressure while loading a cargo of crude oil and that the company subsequently discovered a leak on the underwater pipeline. According to the source, the repairs would be more extensive than initially thought and would not begin this week, stressing that the force majeure is likely to remain in place for a minimum of one month. Two of Nigeria’s largest fields are presently under force majeure, with Shell-operated Forcados crude oil exports halted since the militant group attacked its subsea pipeline in February. While ExxonMobil said at the time it declared force majeure that the terminal was operating, traders said the company had not yet released a revised loading schedule for July crude exports, an ominous sign for those hoping to purchase or sell the oil.

According to Reuters vessel tracking, the last ship to load crude at the Qua Iboe terminal was the Ottoman Nobility on July 9. Typically, a vessel would load a million-barrel lot of Qua every three to four days, and exports of 250,000 bpd aboard eight vessels were scheduled for July.Three other ships scheduled to load Qua were near the terminal, one since July 12. Though ExxonMobil said the force majeure was unrelated to any militant activity, the scale of the damage has raised questions among traders.

 

[Vanguard]