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Shell Nigeria suffers 25% drop in annual oil production

Energy behemoth Shell has reported a 25% decrease in crude oil production in Nigeria last year as it battled theft and security difficulties.

According to Shell, its portion of onshore and offshore production in Nigeria in 2022 was 131,000 barrels of oil equivalent per day (boe/d), down from 175,000 boe/d in 2021.

it its annual report, which was published on Thursday, Shell reported that; “Security issues, sabotage, and crude oil theft in the Niger Delta continued and remained significant challenges to onshore operations in 2022, leading to a significant reduction in crude available for export from the Bonny terminal for several months,”

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 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 the settlement of disputes regarding the “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.

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