Connect with us

News

Oil hits $80 as Shell halts 150,000 barrels’ production

Published

on

  • 150,000 bopd crude exports from Nembe Line halted
  • Aiteo shuts NCTL exports pipeline over leaks

 

Shell, Nigeria’s biggest International Oil Company (IOC) in terms of asset and production, yesterday halted crude exports on a 97 kilometre, 150,000 barrels of oil per day Nembe Creek Trunk Line (NCTL) as the oil firm declared force majeure on Bonny Light crude exports, one of the major crude grades from Nigeria.

Consequently, the force majeure declared by the oil giant and concerns that Iranian exports could fall because of renewed United States (U.S.) sanctions, pushed the price of oil at the international market to $80 a barrel for the first time since November 2014.

Cargoes of oil from the Bonny Light stream, for which exports are expected to reach around 195,000 barrels per day in June, had already been delayed by a few days up to about a week.

The force majeure is a contractual term on unforeseeable circumstances that prevent someone from fulfilling a contract. A leak on the 240,000 barrels per day capacity Trans- Forcados pipeline that shut down earlier this week, also effectively cut down deliveries of Forcados, the country’s largest crude grade.

The shutdown of the Nembe Creek Trunk Line (NCTL) by the operator, Aiteo Eastern E&P Company Ltd, a spokesperson for Shell Petroleum Development Company of Nigeria Ltd (SPDC) said in a statement, led to the force majeure.

He stated that all enquiries on the cause of the leak and repair of the pipeline should be directed to the operator. “The Shell Petroleum Development Company of Nigeria Ltd (SPDC) declared force majeure on Bonny Light exports effective 08.00hrs Nigerian Time, May 17, 2018 following the shutdown of the Nembe Creek Trunk Line (NCTL) by the operator, Aiteo Eastern E&P Company Ltd,” the statement read.

Bonny Light oil is a high grade of Nigerian crude oil with high American Petroleum Institute (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. Already, shipments of Nigeria’s Bonny Light crude, one of the country’s major sources of oil revenue, are experiencing delays in loading. Cargoes of oil from the Bonny Light stream, for which exports are expected to reach around 195,000 barrels per day in June, had been delayed by a few days up to about a week.

Meanwhile, oil prices hit $80 a barrel yesterday for the first time since November 2014. Further supporting the high prices, Reuters reported, was the news about action of Shell (RDSa.L) yesterday in Nigeria.

The company said “it was halting crude exports from a major Nigerian pipeline,” the agency reported. Concerns that Iranian exports could fall because of renewed United States (U.S.) sanctions, it was also gathered, also contributed to the price surge, as the sanction reduces supply in an already tightening market. Brent crude futures, LCOc1, reached an intraday high of $80.18 a barrel before receding to $79.67 at 1326 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 41 cents at $71.90 after also hitting their highest since November 2014, at $72.30 a barrel.

U.S. President Donald Trump’s decision this month to withdraw from an international nuclear deal with Iran and revive sanctions that could limit crude exports from OPEC’s third-largest producer has boosted oil prices.

France’s Total (TOTF. PA), last Wednesday, warned that it might abandon a multibillion-dollar gas project in Iran if it could not secure a waiver from U.S. sanctions, casting further doubt on Europeanled efforts to salvage the nuclear deal. A rapid decline in Venezuela’s crude production has further roiled markets in recent months.

“The geopolitical noise and escalation fears are here to stay,” said Norbert Rücker, head of macro and commodity research at Swiss bank, Julius Baer. “Supply concerns are top of mind after the United States left the Iran nuclear deal.”

Global inventories of crude oil and refined products dropped sharply in recent months owing to robust demand and OPEC-led production cuts. Oil stocks were expected to drop further as the peak summer driving season nears, offsetting increases in U.S. shale output, Bernstein analysts said. Several banks have in recent days raised their oil price forecasts, citing tighter supplies and strong demand. Further supporting prices, Shell (RDSa.L) yesterday said it was halting crude exports from a major Nigerian pipeline.

On the flip-side, however, high oil prices could hit consumption, the International Energy Agency warned last Wednesday as it lowered its global oil demand growth forecast for 2018 to 1.4 million barrels per day (bpd) from 1.5 million bpd.

The IEA said global oil demand would average 99.2 million bpd in 2018, although U.S. bank Goldman Sachs said consumption would cross 100 million bpd “this summer”.

Leading production increases is the United States, where crude output C-OUTT- EIA has soared by 27 percent in the last two years to a record 10.72 million bpd, putting it within reach of top producer Russia’s 11 million bpd.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Inside Abuja

VIDEO: Sunday Igboho steals show as Moshood Adeoti declares to succeed Aregbesola

Published

on

One of the leading aspirants in the race to Abere government house for the September 22nd governorship election in Osun state, Alhaji Moshood Olalekan Adeoti popularly addressed as “SHEU” by his admirers has officially declared his intention to contest for the post of the governor, to succeed his boss, Ogbeni Rauf Aregbesola under the platform of the All Progressives Congress APC.

He made his intention known when he visited the state secretariat of the party in Osogbo, accompanied by his teeming supporters, loyalists and well-wishers gathered from all local governments of the state, in his words at the occasion, “Mr. Chairman, I have come forward today as a disciplined and active party member of APC to declare my interest in contesting for the governor of Osun, I have gathered valuable experience over the years, starting from my humble political background as a councilor in Iwo to the state party chairman of Action Congress AC, Action Congress of Nigeria ACN, and now the secretary to the state government in the last eight years, i am most experienced and qualified among all the contestants from both the PDP and APC ” he said.

My interest primarily is to make success out of everywhere Governor Rauf Aregbesola has failed as we have many shortcomings as an administration but government is a continuum, our party APC made many promises which we cannot fulfill but I vow to fulfill all of them if elected as governor. I also want to align with the six integral action plan of Aregbesola and I am totally committed to fulfilling them all provided the APC will give me the platform to contest as its flag bearer, he stressed further.

Speaking at the short ceremony, one of the notable personality who accompanied Adeoti to the ceremony, Chief Sunday Igboho Adeyemo, a chieftain of PDP in Oyo State and a former ally of former Governor, Prince Olagunsoye Oyinlola who affirmed his total readiness to work assiduously for the emergence and success of Adeoti at the polls categorically assured that all known and prominent thugs within and outside Osun will be mobilized to support the ambition of Adeoti. Igboho, a known confidant of Senator Rashidi Ladoja said he has gotten approval of Ladoja to support the APC aspirant.

Watch Video:

One of the party elders from Ejigbo who accompanied Adeoti to the event but prefers to stay anonymous expressed shock about the missed opportunity and lack of cohesion displayed by the grassroot politician of Adeoti caliber, this was an opportunity for Sheu to itemize his manifesto to the party and people, prove bookmakers wrong that he has the capacity needed to administer our state, he also failed to showcase to the public the achievements of the administration in which he served as SSG for eight years, instead was hammering on areas of weaknesses and failures of Aregbesola, the former AD councillor lamented.

“We have over 50 party leaders here, and Sunday Igboho who is not a resident, citizen or voter in Osun state was the one of the persons recognized by the SSG to address the gathering, Igboho that was in Osogbo 2months ago for the PDP state Congress where Adagunodo was elected chairman, this is an insult to our collective sensibility in Osun, the septuagenarian questioned.

When asked when he will resign his present appointment, he simply answered, there is no place in Nigeria or APC constitution where it was written that I have to resign because I want to contest for governor, I’m still the SSG, he boasted.

Continue Reading

News

I built my demolished house with gratuity, says landlord

Published

on

Landlords and residents of Iyeri community, located at Imota, Ikorodu area of Lagos State, have cried out over what they described as the illegal demolition of completed and uncompleted buildings in their communities.

The Iyeri community chairman, Mr Tony Aghedo, said that all the buildings in the community were demolished on April 4, 2018, by the Lagos State Building Control Agency. According to them, they were shocked to see that the bulldozers, which pulled down their homes, were escorted by hundreds of policemen and soldiers.

The community chairman said that he was disallowed to evacuate his property out of his house by the policemen and soldiers, leading to destruction of his property. Tony, who noted that it was the state Ministry of Agriculture that directed the state building control agency to demolish all buildings in the community, added that the community lawyer had already been alerted and that a protest had been held at the state government house.

Tony further said: “It was a tragic day for us. Every landlord and landlady in the community bought their land from the Shupori family. We don’t know the genesis of this land. We only heard that there had been an agreement between the Ministry of Agriculture and the family in question, which was not supposed to affect us.” In a voice filled with emotion, Tony cried out: “I built my now demolished house with my gratuity. I’m just a retired civil servant.

There should at least be a compensation of a sort for us. We must not allow this ministry to intimidate us because we are very sure there has been a conspiracy.” A landlady, who gave her name as Iyaafin Adekola, said: “On the day of the demolition, the policemen were power drunk due to the extent that phones of those who tried to defend their homes were snatched and smashed.” Adekola, a petty trader, said that she was able to raise money, buy and built her now demolished house by working to the bones.

She was said to have collapsed when bulldozers rode through the walls of her two-bedroom apartment, pulling everything to the grounds. She added: “The next place I found myself after witnessing the horrible incident was in the hospital.

I had received two drips. My children and I, live in an uncompleted building.” Comfort Oladeji, 57, implored the government to compensate the affected community members. Oladeji said that it took her 10 years to build her house, which, was demolished within seconds.

The community secretary, Mustapha Akeem, said that necessary actions had been taken, stressing that those who were affected had staged a protest to the Lagos State House of Assembly and other vital places.

He added: “I’m sad because I’m a civil servant, working under the Lagos State Government. We have staged a protest and we are happy that the Governor Akinwunmi Ambode, has given us an appointment date. We wished to be compensated.”

Continue Reading

News

Fani-Kayode’s wife delivers triplets on her birthday

Published

on

Precious, wife of former Aviation Minister, Dr. Femi Fani-Kayode, was yesterday delivered a set of triplets. Precious, who gave birth to three boys, made the announcement on her Instagram page on yesterday.

The former beauty queen further revealed the names of her new babies. She wrote via her handle @snowhiteey: “Thank you Lord for these special birthday gifts. My target was 35 weeks and exactly today, Ragnar, Aiden and Liam just arrived. “I’m doing fine and so are my boys. Thanks for your prayers and wishes, I really do appreciate.”

Continue Reading

Trending

Take advantage of our impressive online traffic; advertise your brands and products on this site. Call

 

For Advert Placement and Enquiries, Call:

Mobile Phone:+234 803 304 2915

 

Online Editor: Michael Abimboye

Mobile Phone: 0813 699 6757

Email: mmakesense@gmail.com

 

Copyright © 2018 NewTelegraph Newspaper.