Erha restart supports Nigerian oil output

Market: Condensate, Crude oil
14/09/26

Nigeria's liquids production edged up by 0.4pc on the month to 1.68mn b/d in August, supported by the resumption of production at ExxonMobil's Erha field, regulator NUPRC said.

The "modest improvement" largely reflected "the resolution of the single buoy mooring operational challenges at the Erha field, which had adversely impacted production performance in the preceding month", NUPRC said.

ExxonMobil declared force majeure on Erha exports in July after "unexpected equipment damage" to a floating buoy on 8 July. The force majeure remains in place despite the resumption of production, ExxonMobil told Argus today.

Production at most other Nigerian fields was relatively stable in August, NUPRC said. Crude output averaged 1.5mn b/d, meaning Nigeria met its Opec+ quota for a fourth consecutive month, according to the regulator.

Argus assessed Nigerian crude output at 1.62mn b/d in August. The discrepancy is partly because the Nigerian government classifies the Agbami grade as a condensate.

Exports of medium sweet Erha crude from Nigeria's deepwater OML 133 recovered to 68,000 b/d in August, after falling to zero in July, according to Kpler. The Popi Sazaklis is loading at Erha's floating production, storage an offloading (FPSO) vessel, while the Maran Hermes is scheduled to arrive on 21 September.

State-owned NNPC raised its September official formula price for Erha by 50¢/bl to a $1.67/bl premium to North Sea Dated on 1 September. Scheduled Erha loadings are projected at 67,000 b/d this month before declining to 61,000 b/d in October.

By Adebiyi Olusolape

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