Unrest in Nigeria, others Deplete Chevron’s Production in Q4 2016

Unrest in Nigeria, others Deplete Chevron’s Production in Q4 2016

Though foreign currency effects increased Chevron Corporation’s earnings in the 2016 fourth quarter, production increases from major capital projects and base business were offset by normal field declines, the impact of asset sales, production entitlement effects in several locations and the effects of civil unrest in Nigeria, Vanguard reports.

The company reported net earnings of $415 million for fourth quarter of 2016, (Q4’16) compared with a loss of $588 million in the corresponding period of 2015. Full year 2016 results recorded a loss of $497 million compared with earnings of $4.6 billion in 2015.

According to the report, “Net oil-equivalent production for the full year 2016 was 2.59 million barrels per day, a decrease of one percent from the prior year. Production increases from major capital projects, shale and tight properties, and base business were more than offset by normal field declines, the impact of asset sales, the partitioned zone shut-in, the effects of civil unrest in Nigeria and planned turnaround activity.”

It further explained that “Net oil-equivalent production of 1.99 million barrels per day in Q4’16 increased 33,000 barrels per day, or 2 percent, from a year ago. Production increases from major capital projects were partially offset by normal field declines, production entitlement effects in several locations and the effects of civil unrest in Nigeria.”

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