Surging Nigerian oil output threatened by growing security issues, outages

A spate of disruptions and security concerns, including kidnappings, are threatening to hinder surging Nigerian oil exports.

Royal Dutch Shell Plc and Total SA declared force majeure on some of their Nigerian exports over the past week, a measure that allows companies to skip supply obligations. Chevron Corp.’s Nigerian unit said an idled well was interfered with.

While the precise cause of the Total force majeure remains unclear, the Shell and Chevron incidents involved third parties. The disruption comes just a few years after militants caused Nigeria’s oil production to plunge by attacking pipelines and other pieces of energy infrastructure.

Last week, two foreign workers were abducted from an onshore oil rig owned by Niger Delta Petroleum Resources Ltd., according to the army. Separately, two Shell workers were kidnapped and their police escorts killed as they were driving in Rivers state, Lagos-based The Nation newspaper reported

 

Source: Bloomberg

Share

SUBSCRIBE TO LATEST ENERGY NEWS

Read the latest energy industry news and researched articles
for oil and gas, power generation, renewable energy, events and more...