Federal Government Reacts to Shell’s Decision To Sell Its Offshore Assets for Over $1bn
- The federal government has addressed Shell's decision to sell offshore assets and other divestments in the oil and gas sector
- The government explained that international companies' divestments provide opportunities for local companies
- It also assured a business-friendly oil and gas sector and quick approval for necessary documents
The minister of state for petroleum resources, Senator Heineken Lokpobiri, has reacted to Shell's decision to sell its onshore assets to a consortium of five Nigerian companies.
Speaking on the sidelines of the recently concluded World Economic Forum in Davos, Switzerland, the minister said the deal, like others, created opportunities.
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He also affirmed that the government is committed to fostering a business-friendly environment in the oil and gas sector.
Lokpobiri further promised that the government would not impede legitimate business transactions in the oil and gas sector.
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His words:
“On the part of the government, once we get the necessary documents, we are ready and will not waste time to give the necessary considerations and consent.”
Shell divestments and benefits
Speaking further on the Shell deal, the minister noted that Nigeria loses nothing as such move creates opportunities for indigenous companies with the capacity to acquire and professionally manage these assets.
He added that it would also bring about increased profitability and the maximisation of local industries' local potentials.
He stressed that the diversification would not adversely affect Nigeria.
The minister reiterated the government's commitment to addressing sector concerns, including insecurity and ageing infrastructure, such as pipelines.
He highlighted ongoing engagements with companies to invest in pipeline technology and other critical infrastructures within the oil and gas value chain.
Lokpobiri concluded by announcing that President Bola Tinubu has approved a licensing bid round, demonstrating the government's dedication to initiating the process promptly.
Nigeria attracts $5bn investment from Shell
Legit.ng earlier reported that Shell reiterated its commitment to investing $5 billion in offshore oil investment opportunities in Nigeria.
In addition, the global group of energy and petrochemical companies pledged to spend a further $1 billion in five to 10 years to boost natural gas output for domestic supplies and exports.
According to a Reuters report, a presidential spokesperson, Ajuri Ngelale, made the announcement.
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Source: Legit.ng
