Shell says asset disposal not its Nigeria exit strategy

234Next

4 April 2011

Shell says asset disposal not its Nigeria exit strategy

Shell Petroleum Development Company (SPDC) of Nigeria Limited at the weekend declared that its decision to dispose of some of its marginal acreages in Nigeria to some indigenous exploration and production operating companies should not be construed to mean a grand plan to leave the country in the near future.

The company has already offered to dispose of about four of its onshore oil blocks located in oil mining leases (OMLs) 30, 34, 40 and 42, reputed to hold a combined reserves of about 2 billion barrels of crude, as part of its strategic plan to reduce the scope of its onshore operations in the Niger Delta region as a result of increase of attacks on its facilities.

The company’s Managing Director/ Country Chairman, Mutiu Sunmonu, told NEXT at the formal sealing of a sale and purchase agreement (SPA) with Elcrest Exploration and Production Nigeria Limited (Elcrest) for the sale of 45 percent equity in OML 40 in Abuja that the company is not contemplating its exit from Nigeria any time soon. “This (the sale of some of its assets) is not an exit strategy for Shell in Nigeria. What we are doing is consolidating our operations to strengthen even our future in Nigeria. We are in Nigeria for the long haul. Some of these assets are of more value to indigenous companies than the multinationals. The sale of marginal oil fields is an exercise aimed at growing indigenous capacity in the upstream oil and gas industry,” Mr. Sunmonu said.