Nigeria's Bonny Light Under Pressure of Crude Oil Price Decline

NIGERIA's crude oil grade, bonny light is under pressure of price decline and insufficient export, due to force majeure regularly declared by Nigerian oil companies as a result of vandalism.

Besides, the Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell Plc, has sold Oil Mining lease (OML) 29 and the Nembe Creek Trunk Line (OML29 and NCTL) and related facilities in the Eastern Niger Delta for $1.7 billion.

The company said in a statement yesterday, that its interests in OML 29 and the Nembe Creek Trunk Line were assigned to Aiteo Eastern E&P Company Limited.

The price of Organisation of Petroleum Exporting Countries (OPEC) basket of twelve crudes, including Nigeria's bonny light has dropped to $50.92 a barrel on Tuesday, compared with $83.50, $80.42 and $63.28 per barrel it recorded in October, November and December last year.

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