Shell to lose 35,000b/d oil for 3-months over at­tacks

Daily Trust - - NEWS - By Daniel Adugbo

Royal Dutch Shell says its oil pro­duc­tion in Nige­ria will fall by 35,000 bar­rels per day in the third quar­ter of 2016 due to sab­o­tage in­ci­dents and sched­uled re­pairs.

Shell, Nige­ria’s old­est en­ergy com­pany, stated this in its sec­ond quar­ter 2016 fi­nan­cial re­sults, warn­ing that its earn­ings could be fur­ther im­pacted if the sit­u­a­tion de­te­ri­o­rates.

“A fur­ther ero­sion of the busi­ness and op­er­at­ing en­vi­ron­ment in Nige­ria could have a ma­te­rial ad­verse ef­fect on us,” the com­pany said.

At­tacks by Niger Delta Avengers on fa­cil­i­ties op­er­ated by Shell have af­fected the com­pany and Nige­ria’s oil ex­ports.

Shell’s 250,000 bar­rels a day gi­ant un­der­wa­ter For­ca­dos 48inch pipe­line had been shut since Fe­bru­ary after an at­tack.

It, how­ever, lifted a force ma­jeure on ex­ports of Bonny Light crude, early in July after nearly two months it sus­pended ex­ports of the crude oil grade fol­low­ing a leak on a pipe­line that con­veys the crude.

The oil ma­jor’s sec­ond quar­ter profit fell by 72 per­cent in what it blamed on weak oil prices and costs re­lated to its $54 bil­lion takeover of BG Group.

Shell Chief Ex­ec­u­tive Ben van Beur­den, said “Lower oil prices con­tinue to be a sig­nif­i­cant chal­lenge across the busi­ness, par­tic­u­larly in the up­stream,”

De­spite the dis­ap­point­ing per­for­mance Shell said new field start-ups and the con­tin­u­ing ramp-up of ex­ist­ing fields, in par­tic­u­lar the Erha North ph2 in Nige­ria, con­trib­uted some 53,000 boe/d to pro­duc­tion com­pared with the sec­ond quar­ter 2015.

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