Vunderkind
Social Member
Royal Dutch Shell has suffered a huge second quarter loss, seeing its earnings drop from $5.7bn from last year to $.4.6bn this year.
Shell has identified the source of its losses as oil theft and the disruption of gas supply in Nigeria. According to Shell Boss Peter Voser, “Higher costs, exploration charge, adverse currency exchange rates and challenges in Nigeria have hit our bottom line”.
He added that the results they were seeing were undermined by several factors but that they were obviously disappointing for Shell.
As a follow-up, it was reported on Wednesday that Shell was planning to sell four more of its oil blocks owned in Nigeria.
Also, Shell stated in June that it was considering selling more of its assets in eastern Niger Delta, which is plagued with security problems. However, it said that it was still committed to Nigeria.
Shell has already sold eight of its Niger Delta Licenses for a total value of $1.8bn since the year 2010.
Mr. Voser noted that Shell is unable to solve the problems in the country alone, but needed assistance from the Nigerian government and other concerned bodies.