W. Africa Crude-Angolan excess grows, Bonny Light force majeure remains

FILE - In this Monday, Dec. 26, 2011 file photo, Shell Bonga offshore oil Floating Production Storage and Offloading vessel off the coast of the Niger Delta in Nigeria. Shell closed the terminal exporting Nigeria's benchmark Bonny Light crude oil on Wednesday May 11, 2016 and was evacuating workers from a threatened oil field as renewed militant attacks cut production in Africa's biggest petroleum producer, the company and a union leader said. (AP Photo/Sunday Alamba, file)

LONDON, Oct 3 (Reuters) – An excess of Angola cargoes was building amid weak Chinese demand. Nigerian differentials fared better, in part due to shorter November programmes and loading delays on Qua Iboe and Forcados.


* The Erha loading programme for November emerged with just two cargoes, one with ExxonMobil and the second going to Vitol. This compared with four in October.

* There was no Bonny Light programme, and the grade remained under force majeure. The declaration was expected to be lifted later this week or early next week as pipeline operator Aiteo finished repairs on the Nembe Creek Trunkline.

* A relatively small Qua Iboe export plan for November, due to subsea maintenance work, along with loading delays on Forcados and Qua Iboe limited Nigerian availability.

* Fewer than 10 cargoes are left from Nigeria’s October loading programme.


* Some 25 cargoes from the October and November programmes had yet to trade at all, while at least five others could be reoffered, sources said.

* The overhang was exacerbated by Chinese holidays, which took key buyers out of the market.

* China’s Unipec also continued to offer cargoes, including Dalia at a 5 cent premium to dated Brent, Plutonio at a 65 cent premium and Nemba at a 35 cent premium.

* Congolese Djeno was offered at flat to dated Brent.

* Traders said state oil company Sonangol lowered its offer levels for Dalia to dated Brent plus 20 cents, down from a 30 cent premium.


* Indian Oil Corp’s tender to buy December-loading West African crude was likely to be awarded by Thursday. A second tender for November-loading U.S. crude closes tomorrow.

* A tender from Indonesia’s Pertamina closed on Monday with results expected to on Wednesday. (Reporting by Libby George, additional reporting by Alex Lawler, editing by Alexander Smith)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.


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