By Jeph Ajobaju, Chief Copy Editor
Agip has discovered more oil in Nigeria’s Deep South to shore up receipts for the treasury, and exports are set to rise in October, consolidating the position of the world’s sixth largest oil producer.
“The find amounts to about 1 trillion cubic feet of gas and 60 million barrels of associated condensate in the deep drilled sequences,” Agip confirmed.
Nigeria depends on oil for 70 per cent of government revenue and 90 per cent of foreign exchange earnings.
It produces 2 million bpd but it is seeking to raise that to 4 million bpd.
Exports of high grades
Exports of Nigeria’s four key crude oil grades – Bonny Light, Bonga, Qua Iboe, and Forcados – are billed to rise in October by 8,000 bpd, but Qua Iboe is expected to drop from 253,000 bpd to 184,000 bpd.
Reuters quoted traders as saying that about 15-20 Nigerian cargoes remained from the September programme.
Egina was being offered at least $4 above dated Brent. About three Forcados cargoes remain and Qua Iboe was still on offer at dated Brent plus $2.50.
The Nigerian National Petroleum Corporation (NNPC) has lowered the September official selling price (OSP) for Bonny Light, down to 145 cents from 163 cents per barrel in July, and Qua Iboe to 144 cents from 157 cents per barrel.
Reduced gasoline demand in the United States has weighed on Nigerian differentials in recent days, with offers for Bonny Light and Qua Iboe sliding below $2.50 above dated Brent, according to Reuters.
Refineries in the U.S. have cut the volume of crude processed so far this year, but stocks of gasoline and distillates remain ample, highlighting the slack demand for transportation fuels.
However, planned maintenance in early September to the Buzzard field in the North Sea, which feeds main grade Forties, may provide support for comparable Nigerian grades.
New oil find raises potential output
AFP reports that new quantities of gas and oil were discovered in an onshore facility in the Niger Delta, raising potential output in Africa’s leading oil exporter.
The Nigerian Agip Oil Company (NAOC) made the discovery in the Obiafu-Obrikom fields, the company said in a statement.
Italian oil major Eni operates the NAOC, which is majority-owned by the NNPC, with minority stakes held by Oando and Eni.
“The well can deliver in excess of 100 million standard cubic feet/day of gas and 3,000 barrels/day of associated condensates, and will be immediately put on-stream to increase NAOC’s gas production,” Agip added.
Eni has been operating in Nigeria since 1962 and currently produces 100,000 bpd of crude oil.
