Shell Nigeria suffers 25% drop in annual oil production
Shell, a global energy giant, has said its crude oil production in Nigeria fell by a quarter last year as it continued to battle security issues and theft.
The company said its share of production, onshore and offshore, in Nigeria was 131,000 barrels of oil equivalent per day (boe/d) in 2022, compared with 175,000 boe/d in 2021.
“Security issues, sabotage and crude oil theft in the Niger Delta continued and remained significant challenges to our onshore operations in 2022, leading to a significant reduction of crude available for export from the Bonny terminal for several months,” it said in its annual report released on Thursday.
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Shell said it would continue to monitor the situation closely and evaluate implications for the integrity of its infrastructure and the sustainability of its current operations.
“We continue to put the safety of our employees and contractors first. In our Nigerian operations, we face various risks and adverse conditions which could have a significant adverse effect on our operational performance, earnings, cash flows and financial condition,” it said.
Shell had announced in 2021 its intention to reduce its involvement in onshore oil production in Nigeria, in line with its Powering Progress strategy.
It said in its annual report that two offshore oil blocks, OML 118 and OML 133, were renewed last year for 20 years following settlement of disputes regarding “historic allocation of production” between Nigerian National Petroleum Corporation and the parties to the Production Sharing Contracts.
“Authorities are investigating our involvement in Nigerian oil Block OPL 245 and the 2011 settlement of litigation pertaining to that block,” the company added.