Business Nigeria Faces Likely Oil Output Drop As Exxon Suspends Exports



Nigeria may likely face decline in oil output as U.S. oil company, Exxon Mobil Corporation, says it has suspended exports from Nigeria’s top crude stream due to renewed activities of militants in the Niger Delta region.

A statement from the company says it had declared a force majeure – a suspension of deliveries because of events beyond its control – on Nigeria’s Qua Iboe crude oil grade BFO-QUA, and that a portion of production had been curtailed after a drilling rig damaged a pipeline.‎


Last week, Royal Dutch Shell shut down one of its major pipelines and declared force majeure on Bonny Light crude exports due to renewed militant activities in the oil-rich Niger Delta region. A new militant group, Niger Delta Avengers, attacked an oil platform in Delta belonging to Chevron.

Meanwhile, the Nigerian Army has announced the arrest of five mastermind of the Niger Delta bombings belonging to the Niger Delta Avengers' group.