Bonny light to Argentina amid pipeline woes

Nigeria

ABUJA, July 12, 2016 – Traders on Monday said Shell had been awarded a tender to ship 1 million bopd of the Nigerian crude grade Bonny Light to Argentina. The award comes at a time of fresh pipeline woes for the company.

While Shell Petroleum Development Company of Nigeria was able to lift the force majeure on exports of the Bonny Light crude grade on July 7, the Trans Niger Pipeline was again shut down on Monday due to a leak. One of two major trunklines carrying Bonny Light, the conduit will soon be inspected ahead of repairs. In May, Shell was forced to declare force majeure on exports of Bonny light due to a leak in the other trunkline, the Nembe Creek Trunk Line.

Shell’s cargo to Argentina is intended for a group of refiners, including Axion Energy, Oil Combustibles and Petrobras Argentina, and marks the third shipment of African crude so far this year.

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