Shell reveals oil production forecasts in Upstream

Oil&Gas Materials 31 March 2020 15:28 (UTC +04:00)
Shell reveals oil production forecasts in Upstream

Baku, Azerbaijan, Mar. 31

By Leman Zeynalova - Trend:

Production of Royal Dutch Shell in Upstream is expected to be between 2,650 and 2,720 thousand barrels of oil equivalent per day in the first quarter of 2020, Trend reports citing the company.

This includes the impact from the transfer of the Egypt offshore assets to the Integrated Gas segment and the transfer of Oil Sands to the Oil Products segment.

Upstream margins are impacted by the weak macro environment. Upstream results, excluding identified items, are also negatively impacted by the effects of a weak Brazilian Real on taxation, a non-cash item

Production in Integrated Gas is expected to be between 920 and 970 thousand barrels of oil equivalent per day, this includes the additional volumes from the Egypt offshore assets that were previously reported in the Upstream segment.

LNG liquefaction volumes are expected to be between 8.8 and 9.2 million tonnes.

Dividend payments from joint ventures and associates are expected to be lower than in other quarters, as is typically the case in the first quarter.

Trading and optimisation results are expected to be average and approximately in line with the fourth quarter 2019.

“More than 90 percent of our term contracts for LNG sales in 2019 were oil price linked with a price-lag of typically 3-6 months. CFFO in Integrated Gas can be impacted by margining resulting from movements in the forward commodity curves. At the time of issue, we expect margining inflows not significantly different from those received in the fourth quarter 2019,” the company said.

Shell is an international energy company that aims to meet the world’s growing need for more and cleaner energy solutions in ways that are economically, environmentally and socially responsible.

Shell is a global group of energy and petrochemical companies.

Its operations are divided into four businesses: Upstream, Integrated Gas and New Energies, Downstream.


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