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By Jon Egie
Shell Petroleum Development Company of Nigeria has reacted to its rumoured plan to leave Nigeria after selling its onshore business. Shell announced it had reached an agreement with Renaissance Africa Energy to take over its oil business in Niger Delta after it had earlier on put up its offshore assets in the Niger Delta for sale.
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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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Responding to the rumours, Shell stated categorically that there was no plan to leave Nigeria contrary to insinuations.
The international oil company, IOC, said it was exiting onshore oil production in the Niger Delta and to focus future investment in Nigeria on its “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 of assets, it has three other main businesses in Nigeria. “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.”
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. Nigeria attracts $5bn investment from Shell
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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.
