Tuesday, February 9, 2010 22:25

Shell crude production drops to 140,000bpd

By REUTERS

July 1, 2009 01:49AM

Attacks by Nigerian militants in recent days have cut oil output from facilities operated by Royal Dutch Shell's SPDC joint venture to around 140,000 barrels per day, a company spokesman said on Tuesday.

"In the past 10 days we have had five attacks that have reduced our oil production to around 140,000 barrels per day," Shell's Africa communications director Olav Ljosne told Reuters.

SPDC is the largest private oil and gas company in Nigeria and operates a joint venture in which the state-run Nigerian National Petroleum Corporation (NNPC) holds 55 percent, Shell 30 percent, Total 10 percent and Agip 5 percent.

The joint venture operations have the capacity to produce an average of 1 million barrels of oil equivalent per day (boe/d). In 2008, production averaged over 850,000 boe/d, according to the company's website.

Industry sources say current output after the latest attacks is less than half what SPDC was producing earlier this year.

Back

Dear reader.
While we value your feedback we have to moderate them, so your comments would appear in a maximum of one hour. Please feel free to return and read through again after another user may have replied to what you have said.
Please note that 234NEXT.com bears no responsibility for what readers post, and is not liable for any form of impersonation.

Reader Comments (5)

Posted by Oluto on Jul 01 2009

Yar'Adua under pressure to negotiate with MEND. Multinational oil and gas companies are loosing billions daily and they control Nigeria leadership. Oil companies want to stop the declining revenue by pressuring PDP/Yar'Adua to find a lasting solution to ND problems. It hurts multinational oil and gas companies and Fg more than the average Joe in ND or lagos.

Posted by kester on Jul 01 2009

this is called deferred production - Technically, some people reduce production during low oil price (Abu Dhabi is doing it now) and increase it during high oil price, when the oil price goes up then you increase your production then you have really increased your revenue and profit margin. so its a two sided scenario depending on the oil price when you defer your production and when you eventually produce it.

Posted by banks on Jul 01 2009

Sorry Kester, but i think you might be wrong. This has little to do with deffered production. Did you look at oil prices lately ? It's at $71.57 per barrel right now, almost about 75% higher than where it was late last year. They're simply cutting back on production because of the ND militants. They can't keep producing at optimal capacity given the current unstable situation in the region.

Posted by Simon E. on Jul 02 2009

I think it is high time the international community begin to consider the demand of the ND millitant seriously. Rather than branding them millitants/kidnappers, these guys are freedom fighters who are fighting for a fair share of what rightly belongs to them that is being stolen by the Nigeria states and the Northern oligarchy that controls the Fed. Gov. of Nigeria. I commend the Commanders of MEND who are fighting a just cause for the generality of the people of the ND at the detriment of their life. Bravo MEND, up ND

Posted by George Debo on Jul 03 2009

Nigerian Government and the oil companies are only interested in the crude. They have no concern for the indigines and their environment. The so called amnesty is to deceive Niger Deltans so that they can continue to take the oil. All N'Deltans should be warry of the devices of the wicked Nigerian Government.