Shell slightly raises its guidance for Q2 integrated production

Shell raised its guidance on Tuesday slightly for its 'integrated gas production' in the upcoming April-June> quarter, but despite this a sharp decline in output is expected due to the Middle East conflict. Shell's Chemicals and Products unit, which includes the big oil trading desk of the group, is expected to have trading results that are in line with previous quarters' strong performance.

Shell has guided that its integrated gas production in the April to June period will be between 610,000 and?650,000 barrels equivalent to oil?perday, down about 30% from the 909,900 boed produced in the first three months. It had previously predicted a range between 580,000 and 640,000 boed. Shell's Pearl Gas-to-Liquids facility in Qatar halted production in mid-March following an attack that damaged the facility.

Shell said that Pearl 'GTL, which is a two train facility capable of processing up to 1.6 billion cubic feet a day (bpd) of wellhead gases and converting them into 140,000 bpd (bpd)?of liquids-to-gas, was damaged on one of the trains during the attacks. Shell also stated that repairs will take around a year.

Shell's production of oil and gas is sourced from the Middle East to the tune of 550,000 boed or 20%. Around 10% of this comes from Qatar.

(source: Reuters)