As a result of severe flooding caused by months of heavy rain, it has been estimated that Nigeria’s daily oil production was cut by 500 000 bbls. Production fell to 2.1 million bpd, down from the usual 2.6 million bpd in a matter of weeks. However, production is being gradually ramped up again towards 2.3 million bpd as the waters begin to recede.
Osten Olorunsola, head of Nigeria’s Department for Petroleum Resources, was quoted as saying, “A lot of oil firms were hit; actually some companies were completely out … Even the big players got seriously hit. Total was completely out in Oil Mining Lease 58, which produces 90 000 bbs. Agip was seriously hit at Obiafo, Mbede and Oguta fields.”
Total has confirmed that production at Oil Mining Lease 58 had been brought to a standstill. The company declared force majeure on its operations in the region. Shell, another major player in Nigeria, also declared force majeure after its production was hampered by the flooding as well as issues caused by theft directly from the pipeline.
Edited from various sources by David Bizley