A total of 14 projects in Nigeria may suffer delays as Royal Dutch Shell posted a loss in the first quarter of 2020 and cut its dividend for the first time since 1945.
The oil major sank into a $24m net loss in Q1, compared to a profit after tax of $6bn in the same period in 2019.
Projects under construction in Nigeria are EA Further Development, Gbaran Nodal Compression, Assa North, Gbaran Phase 3, and Soku Nodal Compression Phase 2, according to Shell.
It said it had not taken final investment decisions on Bonga South West, HI Development, Epu Phase 2, Uzu Development, Bonga Main Life Extension and Upgrade, Bonga North Tranche 1, HA Development, HD Phase I Development, and JK-A Oil Phase I.
The oil giant, which axed spending last month in response to the oil crash, said it had slashed its shareholder dividend by 65 per cent to 16 cents per share, from 47 cents in the fourth quarter.
“As a result of COVID-19, there is significant uncertainty in the expected macroeconomic conditions with an expected negative impact on demand for oil, gas and related products,” Shell said.
It said recent global developments and uncertainty in oil supply had caused further volatility in commodity markets.
It warned that the pandemic would spark a difficult second quarter — with no price rebound in prospect.
ExxonMobil Corporation, the United States’ biggest oil company, on Friday posted its first quarterly loss in three decades on plunging oil demand and collapsing prices, reporting a $610m quarterly deficit after a nearly $3 billion inventory write-down.
