Connect with us

Hi, what are you looking for?

Business News

Shell Laments Significant Decline in Oil Production, Following Pipeline Bombings

Shell’s Nigerian country chair Osagie Okunbor has said recent attacks by militants in the country had contributed to a “significant decline” in production levels.

A number of companies oil sites have been attacked by the Niger Delta Avengers.

Okunbor said unrest in the region had impacted on production, delays to projects and loss of government revenue.

He said: “These illegal acts also have severe environmental consequences. In addition, security threats mean both our development and operating costs are higher than in many other operating environments globally. Ultimately, it means that available funds for the industry don’t stretch as far as they would, if we had a safer operating environment.

“It is clear that security of our assets and people is key to our operations and the federal government has rightly said it will work to ensure a safe and secure working environment for everyone, not just international oil companies”.

The Shell boss said in 2015, theft of crude oil on Shell assets was 25,000 barrels of oil per day, compared with 37,000 bpd in 2014.

The number of sabotage-related spills declined to 93 incidents compared with 139 in 2014.

In 2015, the decrease in theft and spills was also in part due to divestments in the Niger Delta.

He added that both theft and sabotage were still the cause of about 85% of spills from Shell’s pipelines in the region.

Based on survey data compiled by Reuters for the month of May, OPEC crude oil out has fallen by 120,000 barrels per day—a drop largely attributed to the resurgence of Niger Delta militancy.




Follow us on Twitter at @thesignalng

Copyright 2015 SIGNAL. Permission to use portions of this article is granted provided appropriate credits are given to and other relevant sources.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Signal-Tesslo Ad



President Muhammadu Buhari has said that with the high price of oil in the world markets, producing at about half our OPEC quota has...


President Buhari has reacted to the threat by a militant group, the Niger Delta Avengers (NDA) to resume hostilities in the oil-rich region. The...


The Niger Delta region consist of the predominantly oil producing states in Nigeria. In general political discourse, the term Niger Delta is used interchangeably...


Nigeria’s oil revenue target fell by N125.52 billion in the first quarter (Q1, 2020) to N940.91 billion, according to figures released yesterday by Minister...

Copyright ©