Shell starts production at Niger Delta project

Anglo-Dutch oil giant, Royal Dutch Shell announced on Wednesday that following the reported success of the first phase of the project it had commenced gas production from the second phase of its Gbaran-Ubie project located in the Niger Delta region of Nigeria.

Peak production of 175,000 barrels of oil equivalent per day is expected by 2019.

"Today’s announcement is a positive step for Shell's global gas portfolio," said Andy Brown, Shell's upstream director. "It is also good news for Nigeria as gas from Gbaran-Ubie Phase 2 will strengthen supply to the domestic market and maintain supply to the export market."

In addition to drilling 18 new wells, Shell announced it had constructed a pipeline that runs between nearby Kolo Creek and a non-associated gas plant in Soku, which then links up with an existing pipeline between Soku and the Gbaran-Ubie central processing system.

Facilities came on stream in July 2017.

As of 1240 BST, Shell shares had remained flat, up 0.14% to 2,124.55p from the opening bell.