Royal Dutch Shell Plc  .com Rotating Header Image Shell, Chevron Lose $63m a Day in Nigeria

Nigeria is losing about 800,000 bpd of oil production because of militant violence and pipeline leaks at Royal Dutch Shell Plc and Chevron Corp.

The combined quantity of disrupted production is worth $63mn a day, or $1bn every 16 days, using the spot price for Nigeria’s Bonny Light crude oil.

The disruptions are eating into company and government revenues, and contributing to concern about global supply that’s keeping oil prices 30% higher than a year ago.

While the price rise has offset some of the effect of the cuts, companies are turning to Nigeria’s deepwater fields or nearby West African countries, further from violence in the Niger River delta.

Shell Petroleum Development Co, or SPDC, a venture that’s 30% owned by Shell and 55% by state-run Nigerian National Petroleum Corp, is losing about two thirds of its normal output because of violence.

Production at the Chevron-operated venture has fallen by 38,000 bpd from recent halts and leaks. Chevron owns 40% of the venture. and its also non-profit sister websites,,,,, and are all owned by John Donovan. There is also a Wikipedia article.

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