Due to the several attacks on oil and gas facilities in the
Niger Delta region of Nigeria and Federal Government attitude towards the
plight of the people in the region, Indian refiners are now turning to
Malaysian oil cargoes for loading in July and August due to the increasing tension and uncertainty
over the exports of Nigeria’s crude.
On Monday, it was reported by Platts that Bharat Petroleum
Corporation Limited issued a spot tender to purchase a number of Malaysian
light sweet crude grades, with increasing expectations that end uses in India
may switch their attention to Southeast Asia supplies.
This is because buying any Nigerian crude grades would be a
big risk due to a lot of production interruptions as a result of hostilities in
the Niger Delta.
“BPCL, like many
other Indian state-run companies, prefers to take Nigerian light sweet crudes
like Qua Iboe and Bonny Light. Those are the number one choices,” the source
said, adding that “when production [of light sweet Nigerian grades is] in
doubt, the next best option would be Malaysian (grades).”
According to report last week, Mobil Producing Nigeria, a
subsidiary of ExxonMobil, Nigerian crude grade, Qua Iboe, had been placed under
force majeure and exports were halted, while Italian company Eni confirmed
earlier this month that 4,000 barrels per day of oil equivalent of equity
production had been shut in following an attack claimed by Nigerian militants
in the Niger Delta.
Nigerian militant group, the Niger Delta Avengers, has
declared that it would not allow foreign oil companies operating in the Niger
Delta region nor the government to carry out repairs on bombed oil pipelines,
threatening more devastating attacks on any repaired facility.
Thus, they concluded that “There is no guarantee the
Nigerian crudes will load and set sail safely. It’s very risky,” said a
Singapore-based sweet crude trader.
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