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Oil giant Shell anticipates that its oil and gas production across both its Upstream and Integrated Gas business segments will surpass its earlier projections for the first quarter of this year.
In a pre-financial results trading statement, Shell has refined its output forecast for the Upstream segment to range between 1.82 million and 1.92 million barrels per day (b/d) of oil equivalent (boe/d), compared to the previous estimate of 1.73 million to 1.93 million boe/d.
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Furthermore, the company now foresees production from its Integrated Gas business to fall within the range of 960,000 to 1 million boe/d, as opposed to the 930,000 to 990,000 boe/d forecasted during its full-year 2023 results announcement in February.
The projected LNG volumes for the first quarter in the Integrated Gas segment have been adjusted to range from 7.2 million to 7.6 million tons, compared to the previous estimate of 7 million to 7.6 million tons.
While Shell anticipates reporting a robust trading and optimization outcome within the Integrated Gas segment for the quarter, it acknowledges that this performance will be markedly lower than the exceptional result achieved in the fourth quarter of the previous year.
Regarding the Chemicals and Products segment, Shell estimates an indicative refining margin of $12 per barrel for January-March, which is lower than the $19 per barrel reported for the fourth quarter of 2023.
Refinery utilization is expected to range between 89% and 93%, compared to the previous guidance of 83% to 91%. Chemicals utilization is now forecasted to be in the range of 71% to 75%, as opposed to the earlier projection of 68% to 76%.
