BAKU, Azerbaijan, May 5. Upstream production by Royal Dutch Shell is expected to be approximately 1,750 - 1,950 thousand boe/d in the second quarter of 2022, Trend reports with reference to the company.
Production is expected to be lower than in the first quarter 2022 due to lower seasonal gas demand and increased scheduled maintenance mainly in the US Gulf of Mexico.
The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.
Segment earnings and Adjusted Earnings, compared with the fourth quarter 2021, mainly reflected higher realised oil prices (increase of $893 million), partly offset by lower volumes (reduction of $655 million).
First quarter 2022 segment earnings included charges of $433 million related to the phased withdrawal from Russian oil and gas activities and losses of $265 million due to the fair value accounting of commodity derivatives, partly offset by a $330 million gain related to the impact of the strengthening Brazilian real on a deferred tax position. In the fourth quarter 2021, segment earnings included a gain of $3,028 million related to the sale of assets (mainly related to the sale of the Permian business in the USA), partly offset by impairment charges of $407 million and legal provisions of $287 million. See Reference A for further details. Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax paid and negative working capital movements. Total production, compared with the fourth quarter 2021, decreased due to the impact of divestments, mainly related to the Permian business in the USA, and lower demand due to a milder winter, partly offset by the recovery from Hurricane Ida impact and lower maintenance.
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