European refiners see ample supply despite Nigerian disruption

London (Platts)--20Feb2006

European oil refiners were taking the latest disruption to Nigerian crude
exports in their stride because of ample supply, despite delays of more than
two weeks in Forcados loadings, traders said Monday.
     Royal Dutch Shell was forced to shut in production feeding Nigeria's 
Forcados export terminal and its 115,000 EA oilfield after militants bombed
the terminal and sabotaged two pipelines, Shell said Monday. The 455,000 b/d
includes 106,000 b/d shut in after an earlier attack, Shell said.
     "Cargoes are already replaced by suitable grades, depending on the
structure of the refinery," a trader based in the Mediterranean said. "Some of
the grades that could be suitable are those available in the Med." 
     Nigerian oil output was reduced last month after armed gunmen kidnapped
four oil workers from the offshore EA field. Buyers since then have been
looking for replacement barrels.
     "Refineries have already started working to solve the shortage
because the problem started on Jan 11," a trader said
     Last month, Shell told traders that loadings of Forcados in the second
half of February would be pushed into March, according to market sources. For
example, cargoes loading Feb 19-20 would load Mar 6-7, and those loading Feb
17-18 will load Mar 2-3. 
     It was too early to say whether the rescheduled February loadings will be
delayed further as a result of the latest disruption to supply. 
     In the meantime, refiners have taken measures to substitute the gaps in
their supply of Nigerian crude. 
     "There is lots of crude out there besides Forcados," a trader said.
--Walid Kurdi, walid_kurdi@platts.com

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