Shell Petroleum Development Company (SPDC) has confirmed its continued presence in Nigeria, despite the planned divestment of its onshore assets.
The company, known for its deep investments in the country, is spending $5 billion on a single deep offshore project, to show its commitment to the Nigerian oil and gas industry.
Speaking on the sidelines of the 30th Nigerian Economic Summit (#NES30) in Abuja, the Managing Director and Chair of Shell Companies in Nigeria, Mr. Osagie Okunbor, stated that Shell wss here to stay.
“Shell is not leaving Nigeria. We are not going anywhere, and we will be together for a long time,” Okunbor declared.
He explained that while Shell is divesting its onshore assets to a consortium of four companies, the company remains focused on deepwater operations, where it has a technological and financial edge.
Despite concerns about the future of Nigeria’s oil and gas industry, Okunbor expressed optimism, stating that the sector is far from being in decline. “With the enactment of the Petroleum Industry Act (PIA) and other supporting regulations, the industry is in a much better place,” he noted, adding that recent presidential directives have brought much-needed coherence to the sector.
During a panel discussion, Managing Director of Nigeria Liquefied Natural Gas Limited (NLNG), Mr. Philip Mshelbila, echoed the need for economic diversification alongside the growth of the oil and gas industry. “Nigeria must grow its economy, and oil and gas must play a part in that growth,” Mshelbila said, stressing that diversification should complement the oil sector, not replace it.
However, Mshelbila pointed out that insecurity in the Niger Delta has hindered growth in the oil and gas sector, driving international companies away from onshore operations.
He revealed that NLNG’s six trains are currently operating at just 62 per cent capacity due to security challenges and a slowdown in upstream investments.
Meanwhile, the Group Chief Operating Officer of MRS Holdings, Amina Maina, Gabe, the assurance that Nigeria’s ongoing petrol shortage would soon ease. She disclosed that the Dangote Refinery has begun selling petrol, with additional supplies expected to enter the market by the end of the week. “I am aware that a lot more products have come into the system, and the queues should disappear in the coming days,” Maina said. [The Nation]
