Sign in Subscribe
Petroleum industry

CNPC's Niger Refinery Limits Production Amid Export Dispute

Strategic Insights

— 1 min read

The Soraz oil refinery, a joint venture between China National Petroleum Corp (CNPC) and Niger's government, has resumed production after a 45-day shutdown, but continues to limit output to the domestic market due to an ongoing dispute with Niger's state-owned oil firm Sonidep over crude oil prices. The refinery, with a capacity of 20,000 barrels a day (bpd), has struggled to meet this figure, and the current production level is too low to sustain costs, let alone make a profit. The dispute centers on the price paid for crude oil, with CNPC seeking a lower rate than the original agreement of $67 per barrel. Exports were suspended over the summer due to the price row, which has not been resolved.

Key Takeaways:

  • The Soraz oil refinery, with a capacity of 20,000 bpd, has resumed production after a 45-day shutdown but is limiting output to the domestic market due to an export dispute.
  • The dispute is between CNPC and Niger's state-owned oil firm Sonidep over crude oil prices, with CNPC seeking a lower rate than the original agreement of $67 per barrel.
  • Exports were suspended over the summer due to the price row, which has not been resolved, and CNPC has negotiated a lower price of $57 in July.
  • Production by the refinery is running at a low level, with 7,000 bpd reserved for the domestic market under the terms of the agreement between CNPC and Niger.
  • The refinery has struggled to meet its capacity, and the current production level is too low to sustain costs, let alone make a profit.
  • CNPC's head of communication, Magagi Dada, confirmed the refinery was limiting production to the domestic market due to the ongoing export dispute.

Statistics:

  • The Soraz refinery has been shut down for 45 days before resuming production.
  • The disputed crude oil price is $67 per barrel, which CNPC is seeking to lower.
  • The new negotiated price is $57 per barrel.
  • The refinery has a capacity of 20,000 barrels per day (bpd).
  • 7,000 bpd are reserved for the domestic market under the agreement between CNPC and Niger.

Sources:

  • Copyright 2012 www.tradearabia.com
  • Copyright 2015 Al Hilal Publishing and Marketing Group
  • SyndiGate Media Inc. ( Syndigate.info )

Read more