Violence hits Nigerian output, reform bill

A string of attacks across Nigeria’s hydrocarbons-producing regions has reduced oil output by almost 18% in the second quarter of the year and has put further discussion on the long-awaited Petroleum Industry Bill on hold.

According to senator Tayo Alasoadura, chairman of the committee on petroleum resources, problems in the Niger Delta have set progress on the bill, which is designed to overhaul the entire industry, back by three to five months. “As soon as things improve, then it will come to the front of the line again,” he said of the Petroleum Industry Bill on Tuesday.

Attacks on oil and gas infrastructure, for which the Niger Delta Avengers are mostly held responsible, have cut oil production by 17.48%, equivalent to 420,000 bopd, to 1.69 million bopd in the second quarter. Compared with the last quarter of 2015, output was down by 470,000, Nigeria’s National Bureau of Statistics said in a report released earlier this week.

On a more positive note, Shell, one of the companies targeted in the attacks of recent months, on Wednesday announced the lifting of force majeure on exports of bonny light, which had been in place since August 12. A leak on the Nembe Creek Trunk Line at the time forced pipeline operator Aiteo Group to shut down the conduit.