Nigeria crude exports to rise as Shell Forcados resumes operations

Nigeria’s contribution to the Organisation of Petroleum Exporting Countries (OPEC) is expected to increase with the resumption of the Forcados grade of crude oil Sunday. The resumption is coming roughly a month after loadings of the medium sweet grade were suspended because of a potential leak at the export terminal. Sources had told Reuters that exports of the grade, which was scheduled to ship 220,000 barrels per day (bpd) in July, were halted on the evening of July 12 after workers saw fumes near a single buoy mooring where oil was being loaded onto a vessel. A single buoy mooring is essentially a floating loading facility that allows large tankers to moor offshore to discharge cargoes. Shell confirmed that injections into the terminal had been curtailed after the report, though no force majeure was declared. The Shell said the cause of the suspension would be determined by a joint investigation between company and community representatives in tandem with government agencies. The suspension of Forcados loadings contributed to Nigeria becoming the second-biggest contributor to the drop in OPEC crude oil output in July, a Reuters survey showed. This follows observation by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC that the country’s crude oil production dropped by 12.56 per cent in July to 1.29 million barrels daily from 1.48 million barrels daily in June. According to the NUPRC, one of the reasons for the decline was the temporary shutdown of the Forcados terminal, which Shell, the operator, said in mid-July on suspicions of a leak. The Forcados sees loadings of an average of 220,000 barrels daily but on July 12 workers in the area saw fumes near a vessel that was being loaded with crude. The repairs work on the terminal was expected to be completed by the end of the first week of August but as of the middle of this week, Forcados remained shutdown. Earlier this year, the Commission warned that Nigeria is producing one million bpd of crude less than it has the capacity to produce. The agency cited a lack of investments, a shortage of funding sources because of the energy transition, and insecurity among the factors driving the situation. “Currently, Nigeria has the technical allowable capacity to produce about 2.5 million barrels of oil per day. However, arising from the highlighted challenges, our current production hovers around 1.5 million barrels of oil and condensate per day,” the chief executive of the body said in May. To remedy matters, Nigeria earlier this month announced the pending launch of a roadshow to pitch upstream investments in the country. “Whereas the global imperatives for energy transition is clear and justified, the need for Africa’s energy security, economic development and prosperity cannot be overemphasised,” the Nigerian regulator, which is organizing the roadshow, said. According to a senior Petroleum Ministry official, Nigeria is looking to boost its oil production to 1.7 million barrels daily by November this year.

Nigerian airlines to smile as FG assures of BASA implementation  

The Federal Government has assured that it would strive to implement policies that ensure Nigeria’s airlines benefit from the Bilateral Air Services Agreement (BASA) it signed with other countries. Permanent Secretary, Ministry of Aviation and Aerospace, Dr Emmanuel Meribole made this statement at a reception recently organised by the Government of Antigua and Barbuda to celebrate the commencement of direct flights between Nigeria and the Caribbean country by Air Peace Airline recently. Represented by Director Air Transport Management of the Ministry, Mr. Hassan Ejibunu, Meribole said the journey would further strengthen the relationship of both countries in the areas of commerce, trade, and tourism while acknowledged the Federal Government of Nigeria and the Antiguan/Barbudan authorities for approving the designation of Air Peace by the Nigerian Aeronautical Authorities to fly the Nigerian-Antiguan route. In his remarks, Prime Minister of Antigua and Barbuda, Mr. Gatson Browne said “It is a new dawn for the relationship between Nigeria and Antigua”. He emphasized on the ancestral linkage between the Caribbean nations and Africa, which he referred to as the Motherland saying Antigua and Barbuda was home to every African and his government is desirous to promote economic and bilateral ties with African nations within the context of the South-South cooperation. He urged members of the business community from Nigeria and potential investors to take advantage of the favorable economic policy of his government to invest in the country. The Prime Minister further revealed that the country was in a collaboration with Air Peace Airline to float an airline known as LIAT 2020 which would commence flight operations soon. The airline, he said , on commencement of operations would operate in the entire Caribbean countries thus making air connectivity between Africa, the entire Caribbean countries, and America stress-free. Speaking earlier, Director for Economic, Trade and Investment, in the Foreign Affairs Ministry Amb. Bolaji Akinremi, said the development signposts the beginning of a newfound relationship between Antigua and Barbuda as well as the entire Caribbean countries. He said the air connectivity was in sync with the Foreign policy of President Ahmed Bola Tinubu of integrating the economy of Africa nations. Akinremi further said, Caribbean countries were considered as an integral part of Africa as the fifth bloc. He added that the Ministry of Foreign Affairs would continue to foster the new fond relationship by promoting Bilateral meetings between the business communities of both counties.