The Nigerian National Petroleum Corporation (NNPC) has indicated that it expects the force majeure on Nigeria’s Bonny Light crude to be lifted “very soon”This was made known by Mr. Mele Kyari, Group General Manager in charge of NNPC’s crude oil marketing division on Wednesday. He made this disclosure while being interviewed on the sidelines of the the APPEC conference in Singapore.
According to Kyari, “I cannot give you an immediate time frame but I know that it will be very soon,” as soon as repair works are completed
Bonny Light exports are continuing through the other main pipeline, the SPDC-operated Trans Niger Pipeline”
Bonny Light has produced an average of 5.545 million barrels over the last 12 months
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.
Force majeure is a French term literally translated as “greater force“, this clause is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.
Recall that Shell Petroleum Development Company (SPDC) had declared a force majeure September 16 on Nigeria’s Bonny Light crude, based on to issues affecting one of the two major pipelines leading into the grade’s terminal
Bonny Light oil is a high grade of Nigerian crude oil with high API gravity (low specific gravity), produced in the Niger Delta basin and named after the prolific region around the city of Bonny.
The very low sulfur content of Bonny Light crude makes it a highly desired grade for its low corrosiveness to refinery infrastructure and the lower environmental impact of its byproducts in refinery effluent.
Other grades of Nigerian crude oil are Qua Iboe crude oil, Brass River crude oil, and Forcados crude oil. The Bonny Light is in high demand specifically by American and European refineries. It is therefore a major source of income for the nation.
