Shell Petroleum Development Company (SPDC) on Tuesday said it was not exiting Nigeria but would simply shift its portfolio and further investments into deepwater offshore.
The Managing Director of Shell Oil Development Company and Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, disclosed this at the 30th Nigeria Economic Summit.
Speaking on Tuesday at a high-level panel session titled “Driving Growth: The Future of Oil and Gas,” Okunbor explained that the company is further concentrating on deepwater, where it has significant technological and financial advantages. .
“Shell has been in Nigeria for a long time and we have no intention of leaving. We are rebalancing our portfolio from onshore while also focusing more on our deepwater operations and making more investments. I repeat, Shell is not leaving Nigeria. We are not going anywhere and we are here for a long time.
“The shares in our onshore assets will be sold to a consortium of four companies that have gone through a rigorous selection process,” Okunbolu said.
He added that the company is investing more money in Nigeria, with a single project in deepwater offshore costing as much as $5 billion.
“Let us not walk away from here thinking that our industry is in decline. In fact, it is not. I may boldly say that since the establishment of the Petroleum Industry Act (PIA) and the regulations that support it, We are actually in a much better situation.
Financial support promotion article page
Nigerians need trustworthy journalism. Please help us by reporting.
Support fact-based journalism made by Nigerians, for Nigerians. Our thoroughly researched reporting relies on support from readers like you.
By making a small donation, you can help us keep our news free and accessible to everyone.
Every contribution helps ensure we can continue to provide only quality journalism and stories that matter, without paywalls.
Support now x Do it later
“This presidential directive provides a degree of consistency that the industry hasn’t seen in a long time,” he added.
Related article: Shell appoints new managing director for deepwater subsidiary
Shell holds 19 oil drilling leases in Nigeria and has operated there since the 1930s.
In January, the Nigerian arm of London-based oil giant Shell signed a deal with a consortium of five companies, setting the stage for the company to acquire onshore operations in the country.
The deal comes after years of setbacks in the company’s efforts to dispose of assets.
The deal is a relief for Shell. Shell has struggled to manage its assets since 2021 due to sabotage, theft and leaks, some of which have resulted in lawsuits and environmental liability.
Support PREMIUM TIMES’ honest and trustworthy journalism
At Premium Times, we strongly believe in quality journalism. Recognizing that not everyone can afford expensive news subscriptions, we are committed to delivering carefully researched and fact-checked news that is freely accessible to everyone.
Whether you turn to Premium Times for daily updates, in-depth investigations of pressing national issues, or interesting stories, we value our readership.
It’s important to recognize that producing news is expensive, and we pride ourselves on never putting our stories behind the wall of exorbitant pay.
To sustain our commitment to free and accessible news, would you consider supporting us with a small monthly donation?
contribute
Text Ad: Call Willy – +2348098788999