Nigeria Bonny Light crude force majeure lifted: Update

Adds April loadings of the grade in paragraph 5

Shell's Nigerian subsidiary SPDC has lifted a long-standing force majeure at the Bonny Light export terminal.

The company declared force majeure there in March 2022, after a slump in crude receipts eventually led to exports being halted. It began 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.

April loadings of the grade are scheduled to average 97,000 b/d on three cargoes, according to traders, a 54pc increase from April last year when force majeure restrictions came into effect.

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