Nigerian onshore outages hit corporates

02 August 2016, Week 30, Issue 650

Output from Shell Petroleum Development Co. (SPDC) averaged 43,000 barrels per day in the first half of 2016, down from 68,000 bpd during 2015. The second quarter for Royal Dutch Shell’s Nigerian joint venture was particularly tough for the company, it said last week, with production dipping to 37,000 bpd. 

Shell’s total African output was 230,000 bpd in the second quarter, slightly down from 241,000 bpd in the first quarter. 

Gas production was up in the second quarter at SPDC, reaching 14.9 million cubic metres per day from 13.54 mcm per day in the previous quarter. Output was down from 2015, though, which averaged 15.12 mcm per day for the year and 16.43 mcm per day in the second quarter of last year. 

Total production for Shell was up, though, at 31.66 mcm per day, from 24.21 mcm per day in the first quarter. The main reason behind the company’s increase was its acquisition of BG Group, which closed in February. 

A number of the large listed oil companies disclosed results last week. Total’s second quarter production in Africa was down marginally, at 511,000 bpd, from 518,000 bpd, but marginally up from the same quarter in 2015, which was 508,000 bpd. 

The French company also reported its gas production as being flat in the second quarter, at 16.82 mcm per day, marginally up from the first quarter and the 16.03 mcm per day for the year-on-year quarter. 

Statoil’s production was also roughly flat, at 281,000 bpd in the second quarter, compared with 276,000 bpd in the first quarter and 292,000 bpd for the second quarter of 2015. 

Gas production for the Norwegian company increased in the second quarter in Africa, driven solely by In Salah, in Algeria. Statoil works at the project alongside BP and Sonatrach and its equity share of production, at 31.85%, contributed 40,600 barrels of oil equivalent per day in the period. As such, it suggests gross output of 127,500 boepd from In Salah. 

Statoil’s share from the Algerian field was up quarter-on-quarter, from 31,200 boepd, and year-on-year from 31,400 boepd. During the same quarter in 2014, output from this project was 38,500 boepd. 

The recent increase at In Salah appears to have been driven by the start of production from the southern fields project, which began in February. 

ExxonMobil’s production slipped significantly, to 494,000 bpd in the second quarter in Africa. Based on a first half average of 522,000 bpd, it suggests output in the first quarter was 564,000 bpd. The US super-major acknowledged it had suffered outages, particularly in Nigeria, although its global production was “essentially unchanged”.

BP declined to provide specific numbers for African production in the second quarter.