Shell Increases Output from Bonny Fields

In an effort to make up for lost output in the Niger Delta region Shell is increasing production from its Bonny Light fields. Shell is producing more that its normal 530,000 barrels per day to compensate for the 50,000 barrel per day loss in the Niger Delta. The extra production should mean that exports will not be delayed, despite initial indications that some cargoes would be pushed back by two to five days. In the past, the company has compensated for shut-in production by increasing supplies from elsewhere in the country. Shell still has the capacity to produce around 180,000 bpd of Forcados from onshore wells away from the north and south swamplands, which have been evacuated of personnel. Forcados oil exports are still expected to be delayed by as much as two weeks.

Force majeure has been declared on all three crude streams, meaning the companies cannot meet contractual obligations due to circumstances beyond their control. Most production from the west Niger Delta has now been shut in, but another 700,000 bpd of Brass River and Bonny Light production may be at risk if the unrest shifts to the east.