Ejiofor Alike
4 December 2008
Lagos — Nigeria is currently losing 397,697 barrels per day of crude oil as a result of production deferment caused by the crisis in the oil-rich Niger Delta and other operational reasons, according to official statistics by the Department of Petroleum Resources (DPR).
This is coming on a day Italian energy giant, Eni SpA yesterday declared force majeure on between 15,000 and 18,000 barrels per day of its oil production.
Acting Director of DPR, Alhaji Aliyu Sabonbirni, said in Lagos yesterday at the agency's quarterly briefing that the country's current production deferment was an improvement against a loss of 406, 493 barrels per day recorded at the first quarter of this year.
He identified some of the companies affected in production deferment and the oil fields to include Shell Petroleum Development Company (SPDC), Express, Elf, Nigerian Agip Oil Company's Beniboye flowstation, Nigerian Petroleum Development Company (NPDC) and Dubri Oil.
Others are Shell Nigeria Exploration and Production Company (SNEPCO)'s EA field and Cavendish's Obe field.
The DPR Director, who was represented by the Deputy Director in Charge of Gas, Mr Billy Agha, disclosed that Cavendish's Obe field was shut down due to dry docking of the Floating Production Storage Offshore (FPSO).
He also gave an assurance that the SPDC is making efforts to commence operations at the western location (Warri area) and the remaining locations in the East ( Port Harcourt area).
The DPR boss also disclosed that the country currently produces 2.108 million barrels of crude oil per day.
He noted that if all the production deferment is restored, the country would attain more than the budgeted 2.292million barrels per day on which the 2009 budget is based.
Eni's force majeure according to a top official of the company, who confirmed this to THISDAY last night did not give any reason for the shutdown or say how long it would last. It was however gathered that the measure was due to sabotage by suspected militants.
Eni's latest action brought to three the number of companies that had declared force majeure in the country within the last one week.Few days ago, the Nigeria Liquefied Natural Gas Ltd (NLNG), supplier of around 10 percent of the world's LNG, declared force majeure on gas delivery to its customers.This action came after Shell shut down its Soku Gas Plant to repair pipelines damaged by vandals, and also declared force majeure on gas supply to NLNG.Shell's Soku Gas Plant supplies 40 percent of the NLNG's gas requirments.Shell Petroleum Development Company (SPDC) said in a statement that the temporary shut down of the Soku gas plant in Rivers State , was to enable it carry out urgently needed repairs resulting from damage caused by a significant increase in condensate theft from the plant's pipelines.The declaration of force majeure enables a company to miss contractual obligations to its customers without incurring any legal liabilities due to circumstances beyond its control.
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