State-owned Nigerian National Petroleum Corporation expects the force majeure on Nigeria's Bonny Light crude to be lifted "very soon," Mele Kyari, group general manager of NNPC's crude oil marketing division told S&P Global Platts Wednesday.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
"I cannot give you an immediate time frame but I know that it will be very soon," as soon as repair works are completed, Kyari said in an interview on the sidelines of the the APPEC conference in Singapore.
Asked whether the force majeure will be lifted in October, he said "it is very likely yes."
Force majeure was declared September 16 on Nigeria's Bonny Light crude, due to issues affecting one of the two major pipelines leading into the grade's terminal, a spokesman for terminal operator Shell Petroleum Development Co. of Nigeria, or SPDC, has said.
Bonny Light exports are continuing through the other main pipeline, the SPDC-operated Trans Niger Pipeline, the spokesman said.
Bonny Light has seen its production affected by declarations of force majeure at different points throughout the last year. It most recently came out of a month-long force majeure on August 14, due to issues over a leak on the Nembe Creek Trunk pipeline.
Bonny Light, a light sweet crude with a gravity of 35.3 API and a sulfur content of 0.15%, saw three force majeure declarations in 2016 due to pipeline leaks caused by militant attacks. This year, force majeure has previously been declared in June for several days, and over July-August.
Bonny Light's production has averaged 5.545 million barrels over the last 12 months. The crude is produced on Bonny Island onshore at the eastern edge of the Niger Delta.