Subscribe free to our newsletters via your
. Military Space 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








ENERGY TECH
Technip, Dof announce Petrobras pipeline contract
Paris, France (AFP) Aug 12, 2013
French group Technip and a Norwegian firm have won contracts worth 1.35 billion euros involving the construction of the biggest pipe-laying ships of their type for Brazil, Technip said on Monday. Technip, an oil services group, and Norwegian shipping group DOF, said that they had won eight contracts totalling 1.35 billion euros ($1.8 billion) from Brazilian oil group Petrobras to lay flexibl ... read more


ENERGY TECH
LockMar Receives Contract Modification For PAC-3 Missiles

Rafael gears up for Israel's new defense era

Early hardware delivery enables deployment of crucial missile defense radar

Israel deploys Iron Dome near Red Sea resort of Eilat

ENERGY TECH
Raytheon, US Army complete first AI3 guided flight test series

Raytheon demonstrates high-definition, two-color Third Generation FLIR System

Raytheon, Chemring Group plan live missile firing for next phase of CENTURION development

Panama says suspected missile material found on N. Korea ship

ENERGY TECH
MQ-8B Fire Scout Unmanned Helicopter Passes 5,000 Flight Hours In Afghanistan

CAE training services, products contracted by U.S., Australia

Navy Turns to UAVs for Help with Radar, Communications

Kerry hopes drone strikes in Pakistan will end 'very soon'

ENERGY TECH
New Military Communications Satellite Built By Lockheed Martin Launches

US Navy Poised to Launch Lockheed Martin-Built Secure Communications Satellite for Mobile Users

Northrop Grumman Moves New B-2 Satellite Communications Concept to the High Ground

Canada links up on secure U.S. military telecoms network

ENERGY TECH
India moves closer to buying U.S.-made howitzers

Boeing and US Navy Demo New Targeting and Data Systems on EA-18G

F-35B Ready For Sea Trials

U.S. Navy awards contracts for natural resources management

ENERGY TECH
Colombia aims to raise defense industry profile

US could reduce army by further 15 percent: Hagel

Israeli military exports hit record $7.5B

EADS, Mitsubishi announce restructurings

ENERGY TECH
Talks begin for more US troops in Philippines

Gibraltar row heats up as Spain, Britain make threats

Aging Chinese apologise for Cultural Revolution 'evil'

Obama: Putin's Cold War stance chills ties

ENERGY TECH
Heterogeneous nanoblocks give polymers an edge

Size matters in nanocrystals' ability to adsorb release gases

Gold nanoparticles improve photodetector performance

Water clears path for nanoribbon development




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - 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