Amid renewed attacks on infrastructure in the Niger Delta, the Managing Director of The Shell Petroleum Development Company of Nigeria Ltd and Country Chair, Shell Companies in Nigeria, Mr. Osagie Okunbor, speaks with ‘FEMI ASU about the Nigerian oil and gas industry and the company’s operations and plans in Nigeria As the oldest and largest oil producer in Nigeria, how do you currently see the country’s oil and gas industry and the business climate? You are right; we have been around for some time. Shell has a history of over 50 years in Nigeria and the largest footprint of all the international oil and gas companies operating here. I’m pleased to say that Shell companies and investments in Nigeria have played a pioneering role in onshore, shallow and deep water oil exploration and production. Shell has also been at the forefront of gas development, producing and delivering gas to domestic consumers and export markets for more than 40 years. Ads by Google Ad covers the page Stop seeing this ad We can all see that the business climate is challenging both in terms of local and international pressure points such as the collapse of crude oil price, insecurity and related issues. But I remain an optimist that these challenges also present enormous opportunities for the industry to think and act imaginatively and lay the foundation for a more sustainable future. What is the thinking of Shell Nigeria with respect to the renewed attacks on oil and gas facilities in the Niger Delta? The sabotage of oil and gas infrastructure, other illegal activities such as theft of crude oil and artisanal refining have contributed to a significant decline in production levels, delays to projects and loss of government revenue. These illegal acts also have severe environmental consequences. In addition, security threats mean both our development and operating costs are higher than in many other operating environments globally. Ultimately, it means that available funds for the industry don’t stretch as far as they would, if we had a safer operating environment. It is clear that security of our assets and people is key to our operations and the Federal Government has rightly said it will work to ensure a safe and secure working environment for everyone, not just International Oil Companies. In February, Shell’s Forcados export terminal was shut as a result of damage to a subsea export line, when should we expect the Forcados terminal to come back on stream? I have been asked this question several times and my response is that we are working to bring the line as quickly as humanly and technically possible. However, the repair is by no means a straight forward affair. The work is a delicate exercise that requires temporary wrapping of the damaged section of the line with a special material prior to safe evacuation of the residual crude oil currently trapped in the line. The damaged pipeline is in 4-6 metres of water depth in open seas and it requires damming the water to hold the sea back so that repairs can be safely done. The scope of work therefore,requires detailed planning and consideration of appropriate contingencies for potential emergencies in an environmentally sensitive area. When you take all these factors into consideration, it would be really difficult for me to give precise timing on the completion of repairs. But I can assure you that we are working very hard to safely repair and reopen the line as quickly as possible. This will be disappointing news for companies that produce into the line who have not earned any revenue since February 14. We understand how everyone feels, and that is why we are keeping all stakeholders updated of our plans, actions and projections. Don’t forget that the SPDC also has a significant amount of production that passes through the same line. We’ve heard repair completion dates of May ending and so on; the Vice President recently visited Forcados and stressed the need for the line to be up and running shortly. Are we likely to have it back online this month? Differentdates have, indeed, been reported in the media but I cannot comment on them at this time. What I can say is we are deploying Shell’s global and in-country expertise to undertake the repairs in a safe and efficient manner towards restoration of production into the terminal within the shortest possible time. I received the Vice President, Prof. Yemi Osinbajo when he visited the SPDC’s Forcados Terminal on April 22, and we explained the repair process in detail to him. He was quite appreciative of our challenges and efforts, whilst at the same time urging us to do our utmost to bring the line back as quickly as possible, of course, safely. Some reports had it that you actually shut Bonny Terminal, fearing an attack; is that true? Not at all; that was a very wrong interpretation of force majeure. Some people will be tempted to think that a day will come when Shell or any other IOC will say enough is enough and leave. What is your take on this? Well, I can only speak for Shell, and we’ve made it clear that we are here for the long haul. Shell is not leaving Nigeria. Our strategy in Nigeria is to optimise our onshore oil footprint while making further investments in other growth areas, particularly in deep water and the gas value chain, including domestic gas. Can you give a sense of Shell’s production in Nigeria that has been shut in this year as a result of the security problem? We give such figures on a yearly basis. In 2015, theft of crude oil on the the SPDC JV pipeline network was 25,000 barrels of oil per day, which is less than the 37,000 bpd in 2014. The number of sabotage-related spills declined to 93 incidents compared with 139 in 2014. In 2015, the decrease in theft and spills was also in part due to divestments in the Niger Delta. However, theft and sabotage are still the cause of about 85 per cent of spills from the SPDC JV pipelines. I will leave you to work out the money involved in this shortfall. What is Shell doing as a company and collectively with other IOCs in response to the resurgence in attacks on oil infrastructure in the Niger Delta? I will answer this question by stating that, first and foremost, we are an oil and gas producing company. We do not have expertise in security and we depend on the government, which has the primary responsibility to ensure safety of lives and property. Having said that, the safety of our staff and contractors in Nigeria remains our highest priority. We continue to monitor the security situation and take all necessary steps to ensure their safety. Shell takes a precautionary approach and only carries out oil and gas operations where it is safe to do so. We will continue to liaise with host communities, governmental and non-governmental organisations to help promote peace and safe operations, but the overall responsibility for security lies with the government as is the case all over the world.

www.punchng.com/shell-not-leaving-nigeria-despite-attacks-md/

U dey form Rambo, abi. Don't worry, if you don't start taking more responsibility in developing your host communities, you will leave whether you want to or not.

Destroying your own region for no reason.
Okay, you've got attention and all Nigerians are suffering with you.
At the end of the day, things will stabilize and you'll still have a messed up region.

iflywithbuhari:
U dey form Rambo, abi. Don't worry, if you don't start taking more responsibility in developing your host communities, you will leave whether you want to or not.

ND Militants have been attacking since OBJ's tenure. Shell aint going nowhere until that oil dries up. I agree, FG and Shell needs to start caring for their host communities instead of feeding lazy touts who won't share amnesty money with their communities.

my brothers and sisters help me tell ND that Aje ti wo ile o de ma explore and militants o le destroy.

Cholls:
my brothers and sisters help me tell ND that Aje ti wo ile o de la explore and militants o le destroy.

This reminds me of Duncan Mighty lyrics "Oyinbo no fiti go......" garden city e marama....... i be portharcourt boy ooo

I just feel like commenting my reserve.
Shell dey robust in Naija nauh? Should it leave her lost will be more than her gain; But like seriously government should painstakingly care for The ND Militants.
How person go inherit land wet Foreigner go come dey enjoy pass.
There should be fair assessment of the situation.

TimJackJsm:
I just feel like commenting my reserve.

Shell dey robust in Naija nauh?
Should it leave her lost will be more than her gain;
But like seriously government should painstakingly care for The ND Militants.

How person go inherit land wet Foreigner go come dey enjoy pass.

There should be fair assessment of the situation.

No FG should take care of ND people and region, not those lazy touts that collect money and forgets the common people.

I wish govt kicks them out.

What has Shell ever done for Nigeria.

We need to nationalise it and run it ourselves.

YorubaHighness:


No FG should take care of ND people and region, not those lazy touts that collect money and forgets the common people.

Yes FG should take care of ND region,there are better ways FG can do thay,,and FG knows.
Not just d ND people and the so called touts....
Had it developed,sufficieny and everyone is good living ,who wanna be a tout.
ND touts fights for their rights,am not a supporter of their vandalism acts;
But which better approach could there be?
FG shouldn't be callous,they should intervene asap this could lead to a far more hit to the economy than it is already now.
There should be deliberation.

worksmart:
I wish govt kicks them out.
What has Shell ever done for Nigeria.
We need to nationalise it and run it ourselves.

Na gbese be that 4 Shell.

TimJackJsm:

Yes FG should take care of ND region,there are better ways FG can do thay,,and FG knows.
Not just d ND people and the so called touts....
Had it developed,sufficieny and everyone is good living ,who wanna be a tout.

ND touts fights for their rights,am not a supporter of their vandalism acts;
But which better approach could there be?
FG shouldn't be callous,they should intervene asap this could lead to a far more hit to the economy than it is already now.
There should be deliberation.

Which Nigerian state has any of the above?
ND Militants fight for their own meal, not for the rights of the ND people.
What has Asari done for the ND people?

lols, these guys are real neb unlike my ipob brothers, make una commot the log for polithiefcians eye them.

YorubaHighness:


Which Nigerian state has any of the above?
ND Militants fight for their own meal, not for the rights of the ND people.
What has Asari done for the ND people?

Hehehehe...

If that is the case;
FG should do the right thing.
Vandalism has no good for the current state of the economy.
It can only get worse.
FG shud give dem their share.
Ain't touts that collect tax in some Nigerian local governments then remits to the sectariats?

The ND people benefits 4rm the so-called touts one way or the other.

TimJackJsm:

Hehehehe...

If that is the case;
FG should do the right thing.
Vandalism has no good for the current state of the economy.
It can only get worse.
FG shud give dem their share.
Ain't touts that collect tax in some Nigerian local governments then remits to the sectariats?

The ND people benefits 4rm the so-called touts one way or the other.

Which way? Name 10.

It's better it gets worse for things to get better.
i.e this is a blessing for the SW. Our gov and people are begining to think of investments and methods of diversifying our economy.
If una like, bomb ND, e no go affect SW/N/SE environment.
The SE that keeps egging SS aint gonna feel it.

like they have a choice. I'm sure they are already making plans on how to evacuate their workers if things get worse.

YorubaHighness:


Which way? Name 10.

It's better it gets worse for things to get better.
i.e this is a blessing for the SW. Our gov and people are begining to think of investments and methods of diversifying our economy.
If una like, bomb ND, e no go affect SW/N/SE environment.
The SE that keeps egging SS aint gonna feel it.

Diversifying is a longtime thingy.
ND issue had been ongoing underneath long time before popularized.

The FG is at a loss, by that I mean Naija at large.The economy ain't good,yet the pipeline are being vandalized.
Directly or indirectly it is gonna affect or better put affecting all zones of the country.

The budget tried to circumvent oil,how is that possible,without already put down(non oil)means.
It is just a budget not yet realistic.

ND could be deteriorating her region.
But would always have customer because of her goods(oil).
It is the country that could suffer more loss.

TimJackJsm:

[b]Diversifying is a longtime thingy.
[/b]ND issue had been ongoing underneath long time before popularized.

The FG is at a loss, by that I mean Naija at large.The economy ain't good,yet the pipeline are being vandalized.
Directly or indirectly it is gonna affect or better put affecting all zones of the country.

The budget tried to circumvent oil,how is that possible,without already put down(non oil)means.
It is just a budget not yet realistic.

ND could be deteriorating her region.
But would always have customer because of her goods(oil).
It is the country that could suffer more loss.

Of course it's a longtime thingy.
That's why I'm acknowledging that things will get worse before they get better.
The SW is ready for that challenge.

Let the FG be at loss for now. Things will stabilize.
But to redevelop the ND? lolol look at ogoniland.

DrLee:
like they have a choice. I'm sure they are already making plans on how to evacuate their workers if things get worse.

my advice is let them get more Niger deltans to work in those fields before the avengers descend on them. ..

At the end of the day ,
The major oil coys will continue to divest
the FG will divest .

I will answer this question
by stating that, first and foremost, we are an
oil and gas producing company. We do not
have expertise in security and we depend on
the government, which has the primary
responsibility to ensure safety of lives and
property. Having said that, the safety of our
staff and contractors in Nigeria remains our
highest priority.

This is the funniest part. Imagine a top multinational conglomerate cannot invest in securing the lives of their staff and contractors, and cannot protect their equipment and infrastructure, in the midst of sabotage, company espionage and outright terrorist activities. What a shame

Shell should hide their heads in shame. Their atrocities in our region cannot be washed away. I wish the FG is disciplined enough to put these IOCs and LOCs to the path of sanity.

That said, blowing of facilities is criminal and against our own interest as Niger Deltans. The perpetrating criminals must stop or be stopped.

oduastates:
At the end of the day , The major oil coys will continue to divest the FG will divest .

yoruba man, Go and farm cocoa!