Shell PLC has refuted speculations suggesting that it is exiting Nigeria following the sale of its onshore business in the Niger Delta.
Acoording to reports, Shell declared on Tuesday that it had “reached an agreement to sell its oil business in the Niger Delta, the Shell Petroleum Development Company of Nigeria Limited” to Renaissance Africa Energy.
Following this announcement, numerous reactions surfaced on various social media platforms, with many speculating that Shell was withdrawing from Nigeria.
When contacted on Wednesday, the Shell Nigeria media team clarified to newsmen that the divestment of SPDC is in line with its previously stated intention to “exit onshore oil production in the Niger Delta and to focus future investment in Nigeria on our Deepwater and Integrated Gas positions.”
Contrary to insinuations, Shell said it intended “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy”.
Shell revealed that it possesses three additional primary businesses in Nigeria that fall outside the purview of the aforementioned 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, offering gas to domestic industrial and commercial clients; and Daystar Power Group, delivering integrated solar power solutions to commercial and industrial enterprises across West Africa.
In addition, Shell disclosed that it “holds a 25.6 per cent interest in NLNG, which produces and exports LNG to global markets,” stressing that “Shell’s interest in NLNG is also outside the scope of this transaction”.
On the fate of the current employees of Shell in Nigeria, the company said: “We do not expect a loss of employment. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.”