Shell: only 22% of Nigeria’s oil now onshore

Nigeria’s oil production from onshore region is now hovering around 600,000 barrels per day equivalent to about 22% of the daily production due to the security concerns, Shell Petroleum Development Company Managing Director Mutiu Sunmonu has said. Speaking yesterday at the Nigerian Oil and Gas Conference in Abuja, Sunmonu said the situation shouldn’t be like that but due to the high level of crime in the region the production growth remains stagnant.

Shell had already begun disposing its stakes in the onshore oil wells to small operators and the company has indicated interest to relinquish more of its stakes from such fields. The rest of the oil productions are now from shallow waters and the deep offshore which investors considered to be more expensive but safer.

DAILY TRUST, February 23, 2012