The report said exports of multiple Nigerian crude oil grades, including Bonny Light, Forcados, Brass River and Qua Iboe, have been under periods of force majeuere since the beginning of the year, meaning companies were released from export obligations as a result of circumstances beyond their control.
“Crude oil production disruptions in Nigeria reached 750,000 barrels per day (b/d) in May 2016, the highest level since at least January 2009. The increased disruptions come as militants continue to focus attacks on oil and natural gas infrastructure in the West African region,” the trade press reports revealed.
It said: “Nigeria is a member of the Organisation of Petroleum Exporting Countries (OPEC) and was Africa’s largest oil producer until Angola’s oil production surpassed it earlier this year.”
Also, the minister of state for Petroleum Resources, Dr. Ibe Kachikwu, while speaking yesterday in Lagos, said the country is currently in deficit of 1.1 million barrels per day of oil due to increased militant uprising in the Niger Delta region.
Kachikwu,spoke at the annual conference of the National Association of Energy Correspondents (NAEC) in Lagos also said the declining price of oil in the international market has negatively impacted the country’s revenue leading to economic recession.
He said the development was amply responsible for the current economic recession of the country, adding that something concrete needed to be done now to arrest the ugly situation.
The Minister said OPEC merely controlled 30 per cent of the market while 70 per cent was in the hands of major producers like, the US, Russia and Mexico who were non-OPEC members. According to him, the industry was challenged by $6 billion Cash Call indebtedness accumulated over the last five years with the attendant inadequate financing of the industry during the period in review.
