Shell raised its guidance slightly on Tuesday for its integrated gas production in the April-June quarter, though output is expected to be sharply lower than in the first quarter because of effects from the Middle East conflict. Trading results at Shell’s chemicals and products unit, which includes the group’s big oil trading desk, are expected to be in line with the previous quarter’s strong performance, the group said in a quarterly trading update.
Shell guided for its integrated gas output in the April-to-June period to be about 610,000 to 650,000 barrels of oil equivalent per day, down around 30% from the 909,000 boed it produced in the first quarter. It previously expected a range of 580,000 to 640,000 boed. Production at Shell’s Pearl gas-to-liquids facility in Qatar stopped in mid-March after an attack on the Ras Laffan Industrial City damaged the facility.
Pearl GTL, a two-train facility that can process up to 1.6 billion cubic feet per day of wellhead gas, converting it into 140,000 bpd of gas-to-liquids, sustained damage on one of the trains in the attacks, Shell previously said, and repairs would take around a year.
About 20%, or 550,000 boed, of Shell’s oil and gas production comes from the Middle East, with around 10% of that Qatar-related.
(Reporting by Stephanie Kelly; Editing by Susan Fenton)