Shell Petroleum Development Company (SPDC) has reiterated its commitment to Nigeria, despite plans to divest from its onshore oil assets.
Speaking at the 30th Nigerian Economic Summit in Abuja, the company’s Managing Director and Chair of Shell Companies in Nigeria, Mr. Osagie Okunbor, confirmed that Shell is here to stay. While divesting from onshore assets, Shell plans to focus more on deepwater projects, where it has a technological and financial advantage.
“We are not leaving Nigeria. We are rebalancing our portfolio but investing more in deepwater operations,” Okunbor said, adding that the company is currently investing $5 billion in a single deep offshore project.
The divestment of its onshore assets, which has been sold to a consortium of four companies, does not signal Shell’s exit but rather a shift in its operational focus.
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Okunbor also addressed concerns about the decline in Nigeria’s oil and gas sector, expressing optimism that the industry remains strong. He emphasized that the enactment of the Petroleum Industry Act (PIA) and recent regulatory changes have created a more stable and coherent environment for oil and gas operations in the country.
Similarly, during the summit, Nigeria Liquefied Natural Gas (NLNG) Managing Director Philip Mshelbila emphasized the need for economic diversification, while maintaining that oil and gas must remain a critical component of the country’s growth.
However, he raised concerns about insecurity in the Niger Delta, which has impacted operations, leading to a reduced 62% capacity utilization at NLNG’s six trains.
Meanwhile, the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), rejected the proposed $1.3 billion sale of Shell’s onshore oilfields to the Renaissance Group. The regulator cited the consortium’s lack of capacity to manage the assets. Despite Shell providing all required information, the NUPRC has indicated it will only fast-track approval if Shell assumes responsibility for oil spills and commits to cleanup efforts in the Niger Delta.
