Niger Delta Avengers, NDA, yesterday, scuttled the hope of early resolution of the current spate of bombings in the Niger Delta, as it did not only reject the window created for dialogue by the Federal Government, but also blew up another Chevron Nigeria Limited, CNL, crude oil pipeline in Delta State.
This came on a day indications emerged that Nigeria’s crude oil export may drop further in the days ahead, as major refineries across the globe have concluded plans to stop purchase of crude oil from Nigeria due to rising uncertainties about the country meeting up with deliveries.
The latest attack came as a bombshell to the governors of oil producing states, who met, Tuesday, in Abuja with the Acting President, Professor Yemi Osinbajo, service chiefs and other functionaries on how to end pipeline attacks in the troubled region.
Government had announced a two-week ceasefire on Monday to build confidence in the militants for negotiation.
Foreign refineries to stop buying Nigeria’s crude oil
The restive situation in the region may lead to a further drop in crude oil export as major refineries across the globe have concluded plans to stop the purchase of the commodity from Nigeria due to rising uncertainties about the country meeting up with deliveries.
This is arising from the fact that a number of oil companies in Nigeria had declared force majeure of crude oil export, while a few others had been forced to suspend or cut production as a result of the bombing of oil facilities across the Niger Delta.
According to data obtained from Reuters, four of Nigeria’s oil grades, including the largest stream, Qua Iboe, have been under force majeure over the last one month.
Force majeure is a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances. The report stated that despite the fact that ExxonMobil, which declared force majeure on Qua Iboe in May due to an accident, lifted the declaration last week, the unpredictability is too much for some buyers.
The report further stated that refineries on the United States’ east coast were beginning to turn away from Nigerian crude oil, noting that these same refineries had been on a buying spree for Nigerian crude in recent months that averaged 240,000 barrels per day (bpd) in April and May. As a result, the report said differentials to dated Brent for Qua Iboe, Bonny Light and other grades were under downward pressure, adding that there were several unsold cargoes for June loading.
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