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Shell Nigeria oil exports affected by OPEC cuts


Wed Nov 5, 2008 7:28am EST

LONDON, Nov 5 (Reuters) – Royal Dutch Shell (RDSa.L: QuoteProfileResearch,Stock Buzz) said on Wednesday it would not be able to meet all Nigerian crude supply obligations in November and December following OPEC’s decision to reduce exports.


The Anglo-Dutch oil major was advised by Nigeria, which is a member of the Organization of the Petroleum Exporting Countries and bound by the group’s output cut decision.

“Following the OPEC decision, NNPC has advised us on November and December exports. Accordingly, force majeure has been declared on off-take schedules for November and December,” a spokesman with Shell said.

“All export programmes have been affected.”

Bonny Light has already been under force majeure indefinitely due to underproduction caused by repeated sabotage attacks to oil pipelines in the oil rich Niger Delta region.

The spokesman did not specify the reduction volume but just referred to Nigeria’s reduction plan.

The Shell spokesman also did not say if the company would cancel cargo loadings.

OPEC decided in October to reduce supply by 1.5 million barrels per day from Nov 1.

State run Nigerian National Petroleum Corp. (NNPC) said last week the West African producer will reduce its own crude oil export volumes by 5 percent in November and December and cancel five November export cargoes .

Trading sources said Exxon Mobil (XOM.N: QuoteProfileResearch,Stock Buzz) had cancelled two Qua Iboe cargoes for November. This was not confirmed by Exxon.

(Reporting by Ikuko Kao)


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