- The Federal government of Nigeria has started discussions with Shell Petroleum Development Company, about its plan for total divestment from onshore operations in Nigeria.
- The company, a global leader in the oil and gas sector has been gradually selling its onshore assets for over a decade in Nigeria.
The Federal government of Nigeria has started discussions with Shell Petroleum Development Company, about its plan for total divestment from onshore operations in Nigeria. The company, a global leader in the oil and gas sector has been gradually selling its onshore assets for over a decade in Nigeria.
Shell, operator of Nigeria’s onshore oil and gas joint venture (JV) SPDC, had recently stated that it is not keen to continue to be exposed to the risk of theft and sabotage. The company’s Chief Executive Officer, Mr. Ben van Beurden, however, said that it would like to exit its onshore operations in the Nigerian oil and gas industry as they were not compatible with its long-term climate strategy. He added that the additional community issues in the Niger Delta were becoming a huge challenge for the company.
The Minister of State, Petroleum Resources, Chief Timipre Sylva, said that three possible options were being considered. These include a takeover of the company’s stake in the oil and gas industry by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC); acquisition by indigenous operators and involving a mixture of local players and other foreign independent operators in the process. Minister Sylva expressed the view that Shell should not hurriedly divest and added that the company’s divestment from the sector will not be good for Nigeria.
