Nigeria Bonny Light crude force majeure lifted: Shell

Shell's Nigerian subsidiary SPDC has lifted force majeure at the Bonny Light terminal, but it is unclear how much crude will be exported from there in the coming weeks.

The company had declared force majeure at the terminal in March 2022, after a slump in crude receipts eventually led to exports being halted. It announced the beginning of a "limited export programme", still under restrictions, in early December.

The lifting of force majeure comes after a fire on the Trans Niger Pipeline - which serves the Bonny export terminal - on 3 March threatened to set back resumption of operations. But crude receipts at the terminal seemingly remained steady in the few days following the incident.

Nigeria's upstream regulator NUPRC said output of the Bonny Light grade rose to 78,000 b/d in February from 52,000 b/d in January. The increase contributed to overall Nigerian crude production rising to 1.31mn b/d in February, up by 4pc on the month.

While an export programme for the grade is as yet unavailable, the resumption of Bonny Light exports comes at a time when competition from cheaper rival grades has been affecting demand for Nigerian crude in Europe and east of Suez. European buyers are increasingly turning to US WTI and Caspian BTC Blend, while India - historically a key outlet for Nigerian grades - has been a key beneficiary of discounted Russian supplies since the start of the war in Ukraine.

Most Nigerian prices have dropped by 60¢/bl in the past week, with Bonny Light assessed at a $1/bl premium to North Sea Dated.

By Giulio Bajona