Shell Nigeria Losing Up to 400,000 Barrels/Day Output (Update1)
By Alexander Kwiatkowski and Grant Smith
June 17 (Bloomberg) — Royal Dutch Shell Plc‘s Nigeria venture has as much as 400,000 barrels of crude a day shut in as result of attacks by militants on its facilities, an official said.
Shell Petroleum development Co. has been working to restore output since the attacks halted the production of 477,000 barrels a day in February 2006. Assaults on Shell infrastructure have continued, forcing the country to suspend export obligations for its Bonny Light blend last month.
The interruption to Bonny Light exports “will remain until we can get back some production,” Mutiu Sunmonu, Managing Director of Shell Petroleum Development Co., said at a conference in London today. Between 350,000 and 400,000 barrels a day of the venture’s production remain shut in, he said.
London-based Royal Dutch Shell Plc has a 30 percent stake in Nigerian unit Shell Petroleum Development Co. Shell’s individual share of Nigeria’s production losses amounted to 165,000 barrels a day in the first quarter, Chief Financial Officer Peter Voser said on April 29.
Sunmonu also said Shell will remain a shareholder in Ogoni land operations even though Nigerian National Petroleum Corp., also a partner in Shell’s joint venture, will become operator.
“It’s not that the block is being taken away from Shell,” he said on the sidelines of the conference. “They probably see an advantage in getting somebody else to operate it. I don’t think the structure will change.”
To contact the reporter on this story: Alexander Kwiatkowski in London at[email protected]Grant Smith in London at[email protected]Julie Ziegler in Lagos at[email protected]
Last Updated: June 17, 2008 15:24 EDT
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