By Emmanuel Addeh
Royal Dutch Shell has said that it is currently reviewing its activities in Nigeria, with discussions ongoing as to the future of its operations in the country.
THISDAY had earlier reported the plans by the oil giant to embark on a major divestment of its Nigerian assets, especially those in the shallow-water and onshore.
A Shell spokesman, who craved anonymity, said that the company was in talks with the Nigerian authorities to ensure a smooth transition in whatever course the company decides to take concerning its activities in the country, but declined to go into the specifics.
The spokesmen told THISDAY that consultations were ongoing about the future of Shell’s onshore oil operations in Nigeria, but that talks were still at the early stages.
“Discussions with the Nigerian government are ongoing on the next steps for our onshore business in Nigeria. We are in the early stages of reviewing the commercial options,” the Shell official stated.
In May, the company’s Chief Executive Officer, Ben van Beurden, while speaking at the company’s annual general meeting, said that Shell could no longer afford to be exposed to the risk of theft and sabotage.
Although many people, especially in the Niger Delta, blame the company for the degradation of the region’s environment, the company, however said most of the spills in the region are as a result of vandalism, as well as operational issues, some of which have led to costly repair operations and high-profile lawsuits.
In February, a Dutch court held Shell’s Nigerian subsidiary responsible for multiple oil pipeline leaks in the Niger Delta and ordered it to pay damages to farmers, leading van Beurden to call its Nigerian onshore assets a “headache”.
The company’s onshore joint venture, Shell Petroleum Development Agency (SPDC), has sold about 50 per cent of its oil assets over the past decade, with its stake in the venture giving it 156,000 barrels per day of oil equivalent in 2020, of which 66,000 barrels were oil.
SPDC operates the company’s shallow-water and onshore asset interests via its 30 per cent interest in the SPDC joint venture, which supplies around 10 per cent of Nigeria’s gas demand.
On January 15, 2021, SPDC completed the sale of its 30 per cent interest in OML 17 in the Eastern Niger Delta, and associated infrastructure to TNOG Oil and Gas Ltd, a related company of Heirs Holdings Ltd and Transnational Corporation of Nigeria Plc, for a consideration of $533 million.
