Suspected militants have forced a second shutdown in as many months of the Nembe Creek Trunkline carrying oil from the eastern Niger Delta to the Bonny Export Terminal, located at the edge of the Atlantic Ocean. The shutdown has led to a force majeure, exempting the Nigerian Pipeline operator, Aiteo Oil Exploration and Production Company, from fulfilling its obligations under its contract until the pipeline is repaired.
All six of the saboteurs were killed. The fire also caused Nigeria's oil production to fall 8 percent per day.
The pipeline has subsequently been reconnected and overall oil production is expected to increase by 155,000 barrels per day in June over May. The largest increase will come from its Forcados grade, which will see June loadings of 230,000 bpd, up from 127,000 bpd in May.
The production stability for the African nation this year comes as its breakeven costs fell to just US$23 per barrel, according to Nigerian Petroleum Minister Emmanuel Ibe Kachikwu, who added that the goal is to reduce this per barrel cost further to US$15 per barrel.