. Medical and Hospital News .




ENERGY TECH
Deteriorating situation in Nigeria worries oil majors
by Staff Writers
Lagos, Nigeria (UPI) Aug 13, 2013


disclaimer: image is for illustration purposes only

Royal Dutch Shell and Italy's ENI say they are concerned about Nigeria's deteriorating operating environment.

Nigeria, a member of the Organization of Petroleum Exporting Countries, is Africa's leading petro-state, currently exporting slightly more than 2 million barrels per day.

Both companies in their second quarter 2013 financial summaries note the situation in Nigeria is deteriorating daily and posing an increasingly serious risk for both foreign and domestic companies involved in Nigeria's oil and gas sectors.

Royal Dutch Shell recently declared the rising operational challenges in Nigeria, including theft of crude by organized gangs and pipeline vandal attacks had eroded its profit margin for the second quarter of 2013 by $250 million.

Royal Dutch Shell said Nigeria's deteriorating operating environment led to declining production of 100,000 barrels of oil per day in the second quarter 2013 and by 65,000 bpd compared to its second quarter 2012 production, noting in a statement that in the first half of 2013, "the operating environment in Nigeria deteriorated substantially."

Outgoing Royal Dutch Shell Chief Executive Officer Peter Voser said bluntly: "Higher costs, exploration charges, adverse currency exchange rate effects and challenges in Nigeria have hit our bottom line. These results were undermined by a number of factors -- but they were clearly disappointing for Shell.

"We are not targeting oil and gas production volumes. Rather we are focusing on financial performance. In the next 18 months we expect to see five major project start-ups, which should add over $4 billion to our 2015 cash flow."

Among Western oil giants, Shell is second by production, behind only ExxonMobil.

ENI in its interim update and second quarter results reported similar concerns. ENI reported for the first six months of the year it lost roughly 30,000 barrels of oil per day to criminal theft of maritime oil shipments, sabotage of oil facilities and flooding, leading to losses of approximately $554 million, the Vanguard newspaper reported Tuesday.

Seeking to downplay its concerns, however, ENI also said despite losses in its Nigerian and Libyan operations, the company expected its exploration and production output to grow by more than 3 percent for the rest of 2013.

While both companies have reiterated their intention to remain in Niger, Royal Dutch Shell is cautiously divesting itself of some assets there, a process it began three years ago.

Industry insiders, speaking on condition of anonymity, said Royal Dutch Shell will sell at least four more oil blocks in Nigeria in its latest divestment from Africa's top oil exporter.

Voser confirmed the gist of the information, saying, "We have recently launched strategic portfolio reviews in both Nigeria onshore and North America resources plays, which will lead to further focus and divestments there, as we continue to shape the company for the future."

The Royal Dutch Shell assets to be sold off are Oil Mining Licenses 13 and 16 onshore the Niger Delta, and offshore OML 71 and 72 blocs.

.


Related Links
Powering The World in the 21st Century at Energy-Daily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Get Our Free Newsletters
Space - Defense - Environment - Energy - Solar - Nuclear

...





ENERGY TECH
Iraq violence kills 13 as oil pipeline bombed
Baghdad (AFP) Aug 13, 2013
Attacks in Iraq killed 13 people on Tuesday, four of them Shiite worshippers, while militants bombed a major oil pipeline, halting exports via Turkey, officials said. Security forces have launched major operations against militants in recent weeks that are said to have resulted in scores of arrests, including 12 people detained on Tuesday on suspicion of planning a massive assault on Abu Ghr ... read more


ENERGY TECH
Protesters blast Russia's undocumented immigrants detention camps

Fukushima operator pumps out toxic groundwater

Legacy of 1986 Chernobyl disaster seen in impact on region's forests

Dark tourism brings light to disaster zones

ENERGY TECH
Satellite tracking of zebra migrations in Africa is conservation aid

'Spoofing' attack test takes over ship's GPS navigation at sea

Orbcomm Globaltrak Completes Shipment Of Fuel Monitoring Solution In Afghanistan

Lockheed Martin GPS III Satellite Prototype To Help Cape Canaveral Air Force Station Prep For Launch

ENERGY TECH
Facebook boosts connections, not happiness: study

Brain's flexible hub network helps humans adapt

Find indicates Neanderthals capable of making sophisticated bone tools

A new archaeological technique gives insight into the day before death

ENERGY TECH
Invasive ants said a more serious global threat than thought

Llamas and goats keep grass cut at Chicago airport

Poachers shoot dead rhino in Kenyan capital park

Officials encouraged by growing numbers of endangered primate in China

ENERGY TECH
New H7N9 bird flu death confirmed in China: hospital

New case of H7N9 bird flu confirmed in China: officials

Researchers propose new experiments on mutant bird flu

First likely case of H7N9 bird flu spread by humans reported

ENERGY TECH
China in a pickle over migration statistics

China issues guidelines to prevent wrong court judgements

Hackers attack exiled Tibet government website

China sentences two to death over Xinjiang unrest: Xinhua

ENERGY TECH
Russia home to text message fraud "cottage industry"

Global gangs rake in $870 bn a year: UN official

Mexican generals freed after cartel charges dropped

Mexicans turn to social media to report on drug war

ENERGY TECH
Lies, damn lies, and China's economic statistics

Cisco to cut 4,000 jobs

N. Korea unveils 'secure, homemade' smartphone

China industrial output growth jumps to five-month high




The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement