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Shell to Sell its Onshore Oilfields in Nigeria

Following ongoing oil spills in the Niger Delta, Shell is in talks to divest its Nigerian onshore assets, which it operates through its joint venture, Shell Petroleum Development Company (SPDC).

The company’s operations are concentrated in the Niger Delta and adjoining shallow offshore areas, where it operates in an oil mining lease area of around 31,000Km2. However, SPDC has faced persistent oil spills as a result of pipeline theft, sabotage and operational failures – spilling over 63 barrels of crude oil in the first half of 2020 – leading to costly repairs and lawsuit damages.

“We cannot solve community problems in the Niger Delta – that is for the Nigerian Government perhaps to solve. We can do our best, but at some point in time, we also have to conclude that this is an exposure that doesn’t fit with our risk appetite anymore,” said Ben van Beurden, CEO of Shell, during the company’s annual general meeting. “We’ve drawn that conclusion, and we’re now talking to the Nigerian government on the way forward.”

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Source: EnergyCapitalPower

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