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Shell shuts in 40,000bpd crude oil production

By on June 14, 2014

Shell Petroleum Development Company of Nigeria Limited (SPDC) has suspended crude oil production at the EA field for repair of the Soft Yoke Mooring Platform (SYMP), which connects the Floating Production Storage and Offloading (FPSO) vessel, code-named ‘Sea Eagle’ with the mooring platform.

The company also declared force majeure yesterday on exports of EA blend of crude oil until the work programme is completed and production resumed.

This development followed what SPDC called recent bad weather offshore, which damaged the SYMP bearing, thereby necessitating the shutdown of the facility.

Though the EA has a production capacity of 115,000barrels per day, Shell’s Media Relations Manager, Mr. Precious Okolobo, said in a statement yesterday that only 40,000 barrels of oil per day production was deferred.

The offshore field, located close to about 12 communities around Iduwini Kingdom in Ekeremor Local Government Area of Bayelsa State, is south west of Warri in water depths of around 25 metres.

One of the early incidents of kidnapping of oil workers in the Niger Delta was recorded at the facility on January 10, 2006 when militants kidnapped four foreign oil workers, including an American, a Russian and a Croatian, forcing Shell to shut down the 115,000 barrels per day platform.

It resumed production in July 2009 after more than three years offline, with an initial output of 50,000 barrels a day, which was later ramped up to its production capacity of 115,000bpd.

Shell had also shut down the SPDC Joint Venture-operated oilfield in April 2010, as a precaution to enable repairs on the FPSO, which achieved first oil on December 14, 2002.

Between 2007 and 2010, Shell was said to have spent several billions of naira on projects in the 12 EA host communities.

The company also trained 12 scaffolders and painters currently working on the Sea Eagle in addition to the 12 community focal representatives the company engaged.

 

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