Forcados shutdown drags down OPEC’s May output

Reduced supply from Nigeria was one of the reasons for the reduced supply witnessed by the Organisation of Petroleum Exporting Countries (OPEC) in May.
According to a survey, the OPEC pumped 32 million barrels per day (b/d), the lowest since April 2017 and 70,000 b/d less than April’s revised figure.
The biggest decrease in output was linked to unplanned outages in Nigeria’s major export terminals.
Other reasons stated were decreased output from Venezuela and strong compliance with the OPEC and non-OPEC member agreement.
On May 17, Shell Petroleum Development Company declared a force majeure on Bonny Light crude exports, after it discovered a leak on the Nembe Creek Trunk Line, located in Rivers state.
The following week, Shell announced another shutdown in oil production from its Trans Ramos pipeline in the swamps of the western Niger Delta, in southern Nigeria, due to leaks.
A spokesman for Shell confirmed four leak points on the pipeline and identified the affected areas. Both outages were estimated to cost the country 350,000 b/d of oil exports.
Although Nigeria and Libya were exempted from the output cap deal due to conflict and unrest, both member nations assured OPEC that 2017 output levels would be maintained.
The survey, which was conducted by Reuters, was based on shipping data provided by OPEC, Thomson Reuters flows data and information provided by sources at oil companies, consulting firms.