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African News Dimension: Niger Delta: Shell moves to regain production targets

June 16, 2006 

The Shell Petroleum Development Company (SPDC) has drawn a blueprint to attain production targets, after cutting down production levels because of the persistent unrest in the oil-bearing communities in the Niger Delta. 
 
The Shell Petroleum Development Company (SPDC) has drawn a blueprint to attain production targets, after cutting down production levels because of the persistent unrest in the oil-bearing communities in the Niger Delta.

The News Agency of Nigeria (NAN) reports that circumstances characterised as “difficult situations” compelled Shell to declare force majeure, resulting to loss of about 455,000 barrels per day in production targets.

On June 9, the Director of the Department of Petroleum  Resources (DPR), Mr Tony Chukwueke, announced that Nigeria  was also losing about 800,000 barrels per day as a result of fraudulent activities in the oil sector.
 
The Director of Production of Shell, Mr Mutiu Sunmonu, said  in the latest edition of the Shell Bulletin that the company  had drawn up an agenda to achieve improved production for  the rest of the year and beyond.

According to him, Shell had drawn up a blueprint, tagged “Production Must Win Battles (PMBs), aimed at achieving  equipment reliability, pipeline optimisation, additional oil
output, stable operating environment and organisational  ability.
 
“The five key areas to deliver improved production pose  questions on virtually every segment of the business–how  can we get more from existing wells.

“How can we ensure our equipment and facilities are workinmg in top condition with less shutdowns and deferment,  what are the short-term options to ensure our pipelines are
ready to evacuate additional oil and how can we get over
pipeline vandalism,?” Sunmonu asked.

“If we get these answers right, we will be able to deliver more value to all stakeholders–staff, investors, communities and the Nigerian state as a whole,” he added.

He said that a training programme, aimed at achieving the the production “must-win” battles had been slated to commence this month.

The Deputy Managing Director of Shell, Mr Mark Corner, noted that the company had operated in a difficult situation in the first quarter of the year, with attacks on oil
installations.

He lauded the workers of the company for showing understanding with the company, urging them to continue to work safely and to prepare for full steam work “when conditions allow the company to return to normal production activity”.

Anglo-Dutch Shell and other oil majors have been contending with difficult situations in the oil-rich Niger Delta, where militants have been disrupting oil production activities.

News Agency of Nigeria (NAN)

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