BusinessDay... the voice of business: Shell says no timeframe to   re-start 164, 000 barrels a day

Shell says no timeframe to   re-start 164, 000 barrels a day
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EJIOFOR ALIKE on 08 May, 2008 02:00:00
 
Shell said yesterday that about 164, 000 barrels a day of its output in the
country remain shut following a spate of sabotage last month to its oil
facilities and it still does not know when it can restore the lost production.
“The situation is unchanged,” a spokesman with Shell in the Hague said.
About 164,000 barrels of Bonny Light crude production, or about 40 percent of
the Anglo-Dutch major’s equity oil output in the West African country, was
still shut in and a force majeure remained in place.
“Repair works are going on and it is making some progress. But some affected
areas are more difficult to access for security reasons so it cannot be done in
one day or another,” the spokesman said.
“We cannot give a specific time frame when repair works will be done,” he
added.
The country has been losing about 560,000 barrels of oil every day from its
most recent production level of 2 million bpd.
Exxon Mobil had only on Wednesday lifted force majeure on its oil exports as
its s output there fully recovered after an eight-day union strike shut all of
its output, which averaged 800,000 bpd last year.
Shell declared force majeure on Bonny Light exports, saying it was forced to
shut in 169,000 barrels of Bonny Light production for repair work following
sabotage to a pipeline last week.
“It will become effective as of April 22 and it will remain effective for the
rest of April and May,” a company spokesman said.
He added some Bonny Light barrels should be still exported while the force
majeure was in place, but the volume would not be enough to meet all contract
obligations.
Bonny Light production should be about 400,000 barrels per day without any
problems.