Shell laments attacks on facilities

Shell has lamented continued attacks on its facilities saying the attacks put a brake on output.
The warning underlines the enduring threat of attacks even as production recovers from a major militant campaign in 2016.
Shell declared force majeure on Bonny Light crude shipments last month following pipeline leaks, while loadings of Forcados exports were also delayed
According to general manager for external relations at Shell, Igo Weli, “Security in parts of the Niger delta remains a major concern with persisting incidents of criminality, kidnapping and vandalism as well as onshore and offshore piracy,” said,.
Militant assaults on Nigeria’s oil infrastructure in 2016 cut the country’s output to less than 1.4 million barrels a day, the lowest in 27 years. While there hasn’t been a major attack since, the security situation in the oil region remains fluid.
“Facilities operated by both indigenous and international oil companies continue to be vandalized by attacks and other illegal activities such as crude-oil theft,” he said by email. “We are continuing to monitor the situation to mitigate any exposure and minimize risks faced by our personnel.”
Shell pumped an average of 631,000 barrels a day in Nigeria last year, about a third of the nation’s production. Despite the rally in output, the company still counted 60 cases of sabotage and theft, compared with 49 the year before. There were 10 such incidents recorded in the first two months of 2018, according to Weli.
Shell and its Nigerian partners are “currently evaluating opportunities to further increase production of the Bonga field,” a deep-water project which started production in 2005, Weli said.
Nigeria, Africa’s top oil producer, is scheduled to load at least 1.8 million barrels a day next month. That equals the production cap it agreed on with the Organization of Petroleum Exporting Countries, which took effect in January.
Expert decries continued reliance on IOCs for crude oil, exports data
The Nigeria Natural Resource Charter (NNRC) has said that Nigeria continues to make a mockery of itself with the reliance on data from international oil companies (IOCs) to determine the volume of crude oil produced and exported.
Chair of the Expert Advisory Panel (EAP) of the NNRC, Mr. Odein Ajumogobia, noted that after 60 years of oil exploration and production the country was yet to generate data on its own.
Mr. Ajumogobia, pointed out that after several years of reportedly managing the country’s oil industry, the government still do not know the exact volume of crude oil exported every day.
He, therefore, called on the government to undertake reforms in the oil and gas sector as highlighted in the NEITI report.
“Despite our proven reserves of 37.1 billion barrels of crude oil and 180.1 trillion cubic feet of natural gas, Nigeria remains a net importer of refined petroleum products aimed at meeting the bulk of its local consumption needs. Undoubtedly, we are yet to fully optimise and maximise the opportunities in the oil and gas value chain. The need for our government to address some of the recurring issues in NEITI’s audit reports still requiring remedial actions is of utmost importance. Over the years, both government agencies and the Nigerian public do not know the exact volume of petroleum exported except what the IOC’s say. This is a sad commentary for a country that been exporting crude oil close to six decades,” Ajumogobia explained.