ExxonMobil Corporation (NYSE:XOM) is reportedly chalking out a plan to export Qua Iboe crude oil through an alternate pipeline while repairing the main export line that was damaged in July.
Notably, the above mentioned crude oil is Nigeria's largest export stream. However, the crude oil grade has been under force majeure since mid-July, when the company detected an irregularity in the subsea pipeline system.
In fact, the company discovered significant damage later and estimated repair works spanning over a period of about one to two months. However, both ExxonMobil and the Qua Iboe terminal refused to divulge specific details about these developments.
Nigerian oil production continues to be plagued by militant action since the beginning of this year. In fact, Nigerian state oil company – NNPC – observes that pipeline attacks have taken out about 700,000 barrels per day (bpd) from production, which is usually over 2 million bpd.
Moreover, other pipelines like crude oil streams Forcados and Brass River are under force majeure, while Bonny Light and Escravos exports have been hindered by pipeline closures.
Though ExxonMobil disagreed to any militant involvement in the problem on the Qua Iboe pipeline, the Niger Delta Avengers claimed an attack on the 48" pipeline just days before the force majeure was announced.
According to the sources, the repairs works would take months, which has prompted ExxonMobil to try to export via a second, smaller pipeline that also feeds the platform.
ExxonMobil currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector include Sasol Ltd. (NYSE:SSL) , Enbridge, Inc. (NYSE:ENB) and Total SA (TO:TOT) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
TOTAL FINA SA (TOT): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
SASOL LTD -ADR (SSL): Free Stock Analysis Report
ENBRIDGE INC (ENB): Free Stock Analysis Report
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ExxonMobil To Export Qua Iboe Crude Via Alternate Pipeline
Published 08/15/2016, 11:00 PM
Updated 07/09/2023, 06:31 AM
ExxonMobil To Export Qua Iboe Crude Via Alternate Pipeline
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