In Freight News 16/09/2016
Mobil Producing Nigeria Unlimited, a unit of ExxonMobil, will resume shipment of Qua Iboe crude, Nigeria’s largest grade of crude oil in October, three months after the company had declared force majeure on the exports of the grade.
This is coming as oil prices slumped three per cent tuesday following another gloomy prediction by the International Energy Agency (IEA) on demand growth that suggested that oversupply in the oil market might persist for longer than anticipated.
ExxonMobil had declared the force majeure after it observed a leak caused by what it described as a “system anomaly” during a routine check of its loading facility on July 14, this year.
The cause of the leak was not clear, but the force majeure came just days after a militant group, the Niger Delta Avengers (NDA), claimed to have bombed the company’s 48-inch Qua Iboe crude oil export pipeline on July 11.
But 24 hours after the claim by the militants, the company’s spokesperson, Todd Spitler, debunked the claim, saying “there was no attack on our facilities.”
However, citing industry sources, Reuters reported that the company is offering an October-loading cargo of Qua Iboe crude oil, the first offer since the company declared the force majeure.
It was not clear if the pipeline had been repaired, or if the company expected it to be back on stream in time to load crude in October.
But the cargo is offered for October 8-16 loading at a premium of $1.80 per barrel to dated Brent.
A spokesman for Exxon said the force majeure remained in effect but did not give a timeframe on the resumption of operations.
While ExxonMobil said at the time it declared force majeure that the export terminal was operating, traders said the company did not release a revised loading schedule for the crude exports.
The last ship to load crude at the Qua Iboe terminal was the Ottoman Nobility on July 9.
Source: This Day Live
