In a potential rebound from the decline witnessed in July, Shell has announced that the Forcados export terminal has resumed exporting its medium sweet-grade oil. This came after a suspected leak suspended loading activities for over a month. The interruption in operations at the terminal resulted in a complete halt of the planned shipment, amounting to 220,000 barrels per day (b/d) of oil in July. Consequently, the country’s average crude oil production dropped from 1.25mb/d in June to 1.08mb/d in July 2023.
Analysts are optimistic that the resumption of exports would increase Nigeria’s crude oil output, thereby boosting export revenues. This, in turn, is expected to improve the country’s exchange rate and reduce the escalating cost of imported petroleum products. To reinforce the position, analysts suggest that collaborative efforts among industry associations, security agencies, NNPCL, and other governmental bodies should be undertaken to reactivate dormant oil wells and combat the problem of oil theft and leakages.
