July 16, 2024

Shell Denies Exit Plans from Nigeria Despite Onshore Business Sale

 

By: Emmanuel Ibitoye

 

Contrary to speculations sparked by its recent agreement to sell the Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell PLC has refuted claims of intending to exit Nigeria.

 

The company clarified that the divestment from its onshore business in the Niger Delta aligns with its previously announced strategy to focus on Deepwater and Integrated Gas positions while withdrawing from onshore oil production.

 

In response to the public discourse generated by the sale announcement, Shell’s media team emphasized the company’s commitment to Nigeria as a long-term partner, supporting the nation’s energy needs and export ambitions. The clarification aimed to dispel the notion that the divestment signaled a complete exit from the country.

 

Shell highlighted three other main businesses operating in Nigeria that remain outside the scope of the SPDC transaction. These include Shell Nigeria Exploration and Production Company Limited, engaged in oil and gas production in the deepwater Gulf of Guinea; Shell Nigeria Gas Limited, providing gas to domestic industrial and commercial customers; and Daystar Power Group, offering integrated solar power solutions across West Africa.

 

The company also underlined its 25.6% interest in Nigeria LNG (NLNG), a producer and exporter of liquefied natural gas to global markets, emphasizing that this interest remains unaffected by the SPDC transaction.

 

Addressing concerns about the fate of current Shell employees in Nigeria, the company assured that there is no expectation of job losses. Staff currently employed by SPDC will continue their employment during the transition to new ownership. The statement seeks to clarify Shell’s strategic focus and ongoing commitment to its various businesses in Nigeria, reinforcing its role as a significant player in the country’s energy landscape.

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