Energy major Shell released an updated performance outlook for the second quarter of this year on the 7th. The report indicates that, due to attacks stemming from conflict in the Middle East, Shell's integrated gas production for Q2 is anticipated to decline significantly by approximately 30% compared to the first quarter.

According to the latest forward guidance, Shell has slightly raised its projected range for average daily integrated gas production from April to June to between 610,000 and 650,000 barrels of oil equivalent, up from a previous range of 580,000 to 640,000 barrels of oil equivalent. Despite the improved lower bound, this figure remains substantially below the actual average of 909,000 barrels of oil equivalent per day achieved in Q1.

The primary reason for the sharp production cut is attributed to geopolitical tensions in the Middle East. The report confirms that in mid-March, the Pearl gas-to-liquids facility located in Ras Laffan Industrial City, Qatar, was attacked and damaged, leading to a complete shutdown of the site. It is understood that the Pearl facility comprises two production trains, capable of processing up to 1.6 billion cubic feet of wellhead gas daily and converting it into 140,000 barrels of light oil products. Shell had previously stated that the attack caused significant damage to one of the production trains, with related repair work expected to take approximately one year.

In terms of asset portfolio, Shell maintains a significant reliance on energy resources from the Middle East. Data shows that around 20% of the group's global oil and gas production, equivalent to approximately 550,000 barrels of oil equivalent per day, originates from the Middle East, with about 10% of its production directly linked to Qatar.

Regarding its refining and chemicals business, Shell noted that the Chemicals & Products segment, which includes its large oil trading division, delivered robust trading performance in the second quarter, which is expected to be in line with the strong results seen in the first quarter.