Shell sees oil

Shell sees oil, gas production falling until 2006: upstream chief

London (Platts)--29Jul2004


Shell expects its total oil and gas production to fall over the next two years
as a result of divestments, delayed projects and price effects on oil
entitlements, the group's upstream chief Malcolm Brinded said Thursday. 

Shell
reported earlier oil and gas production contracted 5% year-on-year in the
second quarter to 3.57-mil b/d of oil equivalent. Shell blamed the divestment
of various assets in the US, UK and Thailand and the impact of higher prices
on production sharing agreements reduced production entitlements. By contrast,
UK rival BP grew its production by 18% in the same quarter. "The results are
clearly disappointing," Brinded said in a conference call. "Divestments and
the shutdown of US Gulf Mars platform and price effects were all a factor...
We expect to see production turn up in 2006." He said Shell's production for
2004 was expected to be 3.7 to 3.8-mil boe/d with production in 2005 and 2006
likely to remain between 3.5 to 3.8-mil boe/d. He said project delays to
Shell's Bonga development would also hit production over the next two years.

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