British multinational oil and gas giant Shell PLC has provided update on its future in Nigeria after rumours emerged that it was quitting Nigeria following the offload of its onshore operations in the Niger Delta.
It was reported on Tuesday that Shell had “signed a deal” to sell its oil operations in the Niger Delta.
According to reports, the Shell Petroleum Development Company of Nigeria Limited will be handed over to Renaissance Africa Energy.
The announcement has triggered a lot of reactions on various social media platforms, as many believed that Shell was departing Nigeria.
However, during an interview with the Punch Newspaper on Wednesday, the oil giant media team clarified that the divestment of SPDC was consistent with its previously stated plan to “withdraw from onshore oil production in the Niger Delta and to focus future investment in Nigeria on “our Deepwater and Integrated Gas positions.”
Despite the rumours, Shell said it planned “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export aspirations in areas that are aligned with oits strategy”.
Shell revealed that it had three other main businesses in Nigeria that were not affected by the SPDC transaction. 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 supplies gas to domestic industrial and commercial customers and Daystar Power Group, which provides integrated solar power to commercial and industrial businesses across West Africa.
Moreover, Shell revealed that it “holds a 25.6 per cent stake in NLNG, which produces and exports LNG to global markets,” emphasising that “Shell’s stake in NLNG is also not part of this transaction”.
Shell also ddex that jobs of the current employees of the onshore are secured, and that they will remain with the company as it transitions to new ownership.