Shell Breaks Silence on Reported Plans To Leave Nigeria After 86 Years of Oil Business

Shell Breaks Silence on Reported Plans To Leave Nigeria After 86 Years of Oil Business

  • The British energy giant Shell has clarified reports that it is planning to leave Nigeria after 86 years of active service
  • The rumours of Shell leaving the country were triggered following reports that it is selling its oil business in Niger Delta
  • Already, an agreement has been made with Renaissance Africa, a consortium comprising consisting five major companies

Legit.ng journalist Dave Ibemere has over a decade of experience covering tech, energy, stocks, investments, and the economy.

Shell Petroleum Development Company of Nigeria has reacted to its rumoured plan to leave Nigeria after selling its onshore business.

Legit.ng reported that Shell announced it had reached an agreement with Renaissance Africa Energy to take over its oil business in Niger Delta

Shell Nigeria oil business
Shell has put up its oil business in Niger Delta for sale Photo credit: Jeff J Mitchell
Source: Getty Images

The announcement triggered reactions on various social media platforms, with many Nigerians expressing the opinion that Shell was leaving the country after active service since 1937.

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Shell addresses rumoured plan to leave Nigeria

Responding to the rumours, Shell stated categorically that there is no plan to leave Nigeria contrary to insinuations, Punch reports.

It said:

“The exit onshore oil production in the Niger Delta and to focus future investment in Nigeria on our Deepwater and Integrated Gas positions.”
"We intend to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy”.

Shell also explained that despite the sale, it has three other main businesses in Nigeria.

It added:

"They are Shell Nigeria Exploration and Production Company Limited, which produces oil and gas in the deepwater Gulf of Guinea; Shell Nigeria Gas Limited, which provides gas to domestic industrial and commercial customers and Daystar Power Group, which provides integrated solar power to commercial and industrial businesses across West Africa."

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Shell also disclosed that it holds a 25.6 per cent interest in Nigeria LNG Limited (NLNG), which produces and exports LNG to global markets.

"NLNG business is not part of our onshore business transaction with Renaissance Africa Energy. Also, we do not expect a loss of employment. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.”

Shell has been active in Nigeria since 1937. The oil company has also been at the forefront of gas development, producing and delivering gas to domestic consumers and export markets for over 40 years.

Expert speaks on Shell deal

Reacting to the Shell deal, Joe Nwakwue, the former president society of petroluem engineers believes it is a positive one as it means more Nigerians are going to prove our capacity.

"In the last 10 to 15 years, these offshore assets have failed to attract investments, so it is good news, as we need players who can change that narrative.

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"I have no question in mind that the people taking over the assets will do justice to them.
"However, it is a worry that out of the 5 major international oil companies in the shallow waters, 3 of them have left that area of business. That, to me, is worrisome. We will need to look at why they are leaving. I believe there are serious ease of doing business reasons for their departure."

Nigeria attracts $5bn investment from Shell

Legit.ng earlier reported that Shell reiterated its committed 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.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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