Shell To Lose 35,000barrels for 3-months Over Facility Attacks

Giant oil producing firm, Royal Dutch Shell has said its oil production in Nigeria will dip by 35,000 barrels per day in the third quarter of 2016 due to oil facility attacks and scheduled repairs.

Shell stated this in its second quarter 2016 financial results, warning that its earnings could be further impacted if the situation deteriorates.

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

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 48-inch 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.

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

Its 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.

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.