Exxon Declares Force Majeure on Nigeria’s Oil
Exxon Mobil Corp. in Nigeria declared force majeure on oil liftings from different terminals in the country.
BUSINESS METRICS gathered that this development was triggered by industrial action by the company’s in-house workers union, the company said on Monday in a statement.
This is seen as a wrong signal for the country as Nigeria is trying to lift production to 1.6 million barrels per day (bpd) reclaim its old glory and long-time position as the largest African producer of the Organization of the Petroleum Exporting Countries (OPEC).
In the third quarter of last year, production in Nigeria fell behind Angola to about 1 million bpd as companies like Shell PLC and TotalEnergies exited the country amid widespread corruption and security issues.
According to OPEC’s latest report, Nigeria produced 1.38 million bpd in February.
“We will continue to take all reasonable actions necessary to resolve the impasse as soon as possible,” Exxon spokesperson Michelle Gray said in a statement on Monday.
Exxon has been trying to sell $1.2 billion in shallow-water assets in Nigeria, where it finds operations “challenging”, the company told Reuters in February, while keeping deep-water assets further from the coast.
Oil prices turned lower on Monday morning as investors mulled over the U.S. Federal Reserve’s possible May interest rate hike, which could dampen economic recovery hopes. Brent crude futures were down 55 cents, or 0.6%, at $85.76 a barrel.