Nigeria: Shell West Nigeria Output Drops By Extra 80,000 B/D

THE west base operations of the Anglo Dutch Shell Petroleum Development Company (SPDC) which covers Delta State has suffered a drop of about 80,000 barrels per day in its maximum output, just as the company announces cost cutting measures to enable it remain afloat as the Niger Delta crisis takes toll on its operations.

An official of the organisation who spoke under condition of anonymity hinted that the company is experiencing a lull in its activities in Delta and Rivers states, where several of its installations had been vandalised and out of use.


From its one million barrel per day production capacity, Shell is said to be producing only half of the total output.

Vanguard gathered that Shell has closed virtually all its wells in the Niger Delta and now focuses on its offshore blocks to sustain its operations.

The offshore section reportedly accounts for 70 per cent of its output and revenue profile.

A senior official, who confirmed the restructuring exercise, said Shell introduced austere measures due to its poor finances, especially on the joint venture operations.

“We are operating a lean budget and at the same time repositioning for efficiency in future,” he said.

Vanguard (Lagos)