Wednesday, June 7, 2017 1:45 PM /CardinalStone Research
The Shell Petroleum Development Company of Nigeria Ltd (SPDC) has lifted the force majeure on crude oil exports from Forcados Terminal. Exports has been under force majeure since February 2016 following a militant attack on the main export route, the Trans Forcados Pipeline.
Last week, Shell issued a loading programme for June exports that lifted planned exports from Nigeria to 1.75 million barrels of oil per day (bopd), taking it to at least a 15-month high.
In our view, the lifting of the force majeure is a positive development and we hope for a much improved topline performance in Q2'17 for indigenous E & P companies.
According to Seplat's management, since the recommencement of oil and condensate injection into the Forcados system at the end of May, the company has been able to successfully reinstate gross production at OMLs 4, 38 and 41 to pre-Force Majeure levels of around 75,000 bopd and 290 million standard cubic feet of gas (MMscfd).
On a net working interest basis this equates to around 34,000 bopd and 130 MMscfd. However, Seplat's management disclosed that they will not provide formal production guidance as the situation is still being monitored.