- Nigeria’s Security Situation Remains Sensitive – Shell
Global oil and gas giant, Royal Dutch Shell, has said the security situation in Nigeria, where it is the largest oil producer, remains sensitive.
The oil major, which announced its fourth quarter 2017 results on its website on Thursday, stated this while giving its outlook for the first quarter of this year.
It said its total production in Nigeria increased to 170,000 barrels of oil equivalent per day in the fourth quarter of 2017 from 159,000 boepd, 165,000 boepd and 141,000 boepd in the third, second and first quarters, respectively.
The company’s production in Nigeria fell to as low as 105,000 boepd in the third quarter of 2016 amid a resurgence of militant attacks in the Niger Delta.
Profits at Shell more than doubled in the fourth quarter of last year, as the recovery in oil prices coupled with cost cuts after a three-year downturn fuelled resurgence in profitability. Its earnings on a current cost of supplies basis were $4.3bn, compared with $1.8bn in the same period of 2016.
Its liquids production available for sale in Nigeria stood at 53,000 bpd in the fourth quarter, compared to 32,000 bpd in the same period of 2016.
The oil major’s natural gas production available for sale in Nigeria increased to 677 million standard cubic feet per day from 616 million scfpd in the third quarter.
On its outlook for the first quarter of this year, Shell said, “Compared with the first quarter of 2017, upstream earnings are expected to be negatively impacted by a reduction of some 270,000 boepd associated with completed divestments, and positively impacted by some 40,000 boepd associated with lower maintenance activities.
“Earnings are expected to be positively impacted by 40,000 boepd associated with restored production in Nigeria; however, the security situation remains sensitive.”
After a year of ceasefire, militants under the aegis of the Niger Delta Avengers in January this year, threatened to attack some offshore oil and gas facilities in the oil-rich region in a few days’ time.