Few days before the West African nations join the OPEC talks about the seeming wrong time for a country that went out of the first batch of production cut, the remaining Nigeria’s oil terminal will be starting exports again.
The Forcados terminal witnessed Densa Orca being the second vessel that arrived on Monday. This is coming through after the tanker; Astro Perseus loaded the first cargo in the last seven months just towards the end of last week. Consequently, there may be the regular exportation of 200,000 to 240,000 BPD (Barrels Per Day) by June; this will bring back the normal production of oil in Nigeria as it was before the attacks of militants in 2016.
Effects of the militant attacks
In 2016, the attacks in the Niger Delta region caused an off–balance in oil production, causing Forcados shut except for few weeks’ right from the beginning of 2016. This shut down caused the nation to take back on the output cuts of about 1.8 million barrels per day as agreed between other producers and the Organisation of the Petroleum Exporting Countries (OPEC).
Following visits by Yemi Osinbajo, the Nigerian Vice President to the Niger Delta Region, and about three times increase in the budget for the militants; the attacks was put to an end. The Bonga oil field was maintained in March, and its cost was worth over 200,000 barrel per day export stream. This made the Nigerian output stand still for about two months. Likewise, the export rate was cut down following the shutdown of one of the nation’s biggest export stream for Qua Iboe.
The two majorly affected export streams are getting back to the normal production and activities, and this will bring to manifestation, what the oil minister, Emmanuel Ibe Kachikwu said in a statement in January. Emmanuel said that having a regular production will cause Nigeria to join the output cuts of oil producers. If an extension of the deal is agreed this week in Vienna, a global outage at a six-year low with the rebound may cause Nigeria to come into the fold of cuts.