Shell lifted the force majeure on exports of Nigerian crude Bonny Light on Friday following the repair and reopening of the Nembe Creek Trunkline (NCTL) by the operator, it said in a statement Saturday.
Shell had declared force majeure on Bonny Light exports on May 17 following the shutdown of the NCTL by the operator Aiteo. Bonny Light is one of Nigeria’s key export grades, with production ranging around 200,000-250,000 b/d, and is very popular with global refiners.
Due to the lack of Bonny Light, Nigerian crude oil differentials had recently firmed against benchmark prices, with certain grades pushing to four-month highs of more than $1/b. Nigerian medium-to-light sweet grades like Forcados and Qua Iboe had benefited the most as buyers look for alternative crudes.
These supply disruptions had helped tighten up the current overhang in the West African region, according to traders. Bonny Light, a light sweet crude with a gravity of 35.3 API and a sulfur content of 0.15%, was under force majeure earlier this year and three times last year due to pipeline leaks caused by attacks by militants. S& P Platts
