Shell’s Nigerian oil production dropped by more than 41pc in the second quarter of the year as a series of sabotage attacks shut down fields, with the company warning of a possible deterioration of the situation in the second half.
Shell’s Nigerian subsidiary SPDC produced just 37,000 b/d in the second quarter, down from 63,000 b/d in the same period of 2015, and 24pc lower than production in the first three months of the year.
And the company warns that the security situation in Nigeria is continuing to hit production. Sabotage incidents and repairs in Nigeria will cut its Nigerian oil and gas production by around 35,000 b/d of oil equivalent (boe/d) compared with the same period of 2015, it said.
“Earnings could be further impacted if the security conditions continue to deteriorate,” it added.
Oil theft and sabotage are rampant in the Niger delta. Armed rebel groups have orchestrated a campaign of attacks on oil infrastructure this year that saw Nigerian oil production fall to its lowest in nearly three decades this summer.
And Shell’s Nembe Creek Trunk (NCT) line, which carries Bonny Light crude, a key export grade, was closed in early May because of a leak caused by thieves.