Title: Crude oil disruptions in Nigeria increase as a result of militant attacks - Today in Energy - U.S. Energy Information Administration (EIA)
Headings: Crude oil disruptions in Nigeria increase as a result of militant attacks
Crude oil disruptions in Nigeria increase as a result of militant attacks
Content: Since the beginning of 2016, the Niger Delta Avengers (NDA) have conducted many attacks on oil and natural gas infrastructure throughout the region. Although not the only militant group conducting attacks in the region, the NDA is currently the most active. Source: U.S. Energy Information Administration
The NDA's attacks have resulted in immediate and severe disruptions in crude oil production, as some of the attacks have targeted key oil-gathering and export infrastructure. Nigeria's oil production averaged 1.9 million b/d in 2015. By May 2016, Nigerian oil production had fallen to 1.4 million b/d, nearly a 30-year low. After some repairs, and in the absence of major new attacks, some of the disrupted production was restored, and crude oil output averaged 1.6 million b/d in June. Despite this recent increase, the continued threat of militant attacks poses a risk to sustained production. The NDA has claimed responsibility for several attacks since the beginning of July, and outages once again rose in July. According to trade press reports, exports of multiple Nigerian crude oil grades, including Bonny Light, Forcados, Brass River, and Qua Iboe, have been under periods of force majeure since the beginning of 2016, meaning companies are released from export obligations as a result of circumstances beyond their control.