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Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria - Politics - Nairaland

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Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by NigeriaIsDoomed: 6:06am On Apr 19, 2021
Fresh insights as to why the oil majors are gradually scaling down their operations and planning their exit from the country has been unraveled.

Investigation by The Nation revealed that among the oil majors, including Royal Dutch Shell, ExxonMobil, Total and Eni, are cutting billions in spending after taking hits to their profits, thus shifting money to renewable fuels and focusing only on the most cost-effective markets.

Checks by The Nation further revealed that the country was able to attract only $3 billion, or 4%, out of the $70 billion committed on new projects in Africa between 2015 and 2019, a development experts say, does not bode well for economy which relies on oil receipts to survive.

Nigeria’s loss has been the gains of other African countries such as Angola, Sao Tome and Principe, where some of the IOCs have made major investments in recent years.

In Sao Tome & Principe for instance, is now being heavily courted by oil companies from far and near. Notably, a consortium of US firms, including Chevron Texaco and ExxonMobil where among the first to secure oil license along with a Norwegian company, EER, which netted over $70million with many other prospects.


Confirming this development, Delta State Commissioner for Environment, Hon. Onogba Christian, while fielding question from our correspondent on the sidelines of the “Stakeholders Forum on The Environment” facilitated by the Institute of Directors Nigeria (IoD) Port Harcourt chapter, said oil majors like Shell, Chevron and others may have been compelled by the present socioeconomic realities that has made the current operating environment bad for their business to plan their exit from the country.

Specifically, he said: “The first ominous signs that presented itself was the deliberate efforts by the international oil companies (IOCs) to relocate their headquarters outside the Niger Delta region. When that happened few years back, it was a bad signal.

“Of course, you cannot lay all the blame on the IOCs entirely because no businessman wants to invest in an area where insecurity is a big issue. The problem really has to do with the issue third party interference, poor legislation among other factors which are genuine reasons to affect investment decisions, he stressed.


To address this issue, the government, he maintained, must ensure that there is an enabling environment for business to thrive. “I’m convinced that once there is a level of assurance that their investments can be guaranteed many of these oil managers that have exited the country will come back,” Christain assured.

Echoing similar sentiments, Chief Prof. Jasper Jumbo, Chairman/CEO, Niger Delta Projects Consortium Limited, said, “Nobody wants to do business in an environment of chaos. Once peaceful co-existence is a challenge no business can survive under such a circumstance.”

International energy companies working in Nigeria are worried that proposals in the country’s long-delayed oil industry law will deter investment in new offshore projects.

In a joint presentation, the OPTS urged lawmakers to remove a proposed hydrocarbon tax as producers will still be subject to companies income tax.

“Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favorable environment for future investments and for the launching of new projects,” Mike Sangster, managing director of Total SE’s Nigeria unit, told lawmakers at a hearing in Abuja, the capital recently.

To boost new investment, the proposed law should grant deepwater oil projects full royalty relief for the first five years of production or a graduated royalty program, said Sangster, speaking on behalf of the Oil Producers Trade Section, a group of 30 producers including Total, Royal Dutch Shell Plc, Exxon Mobil Corp., Chevron Corp. and Eni SpA, which he chairs.

The bill — legislation that’s two decades in the making — will streamline how Nigeria’s energy assets are operated and funded. First presented in parliament in 2008, progress in passing the bill was held up by political wrangling and objections from international oil companies that say the government is demanding an excessive increase in revenues.

The persistent failure to pass the bill “has been a major drag” on the oil and gas sector, Ahmad Lawan, president of Nigeria’s Senate, said last January as he opened two days of public hearings on the proposed legislation. The delays have harmed the country’s ability to “attract both local and foreign capital” at a time of greater competition with other resource-rich nations, he said.

https://thenationonlineng.net/why-shell-chevron-other-oil-majors-are-leaving-nigeria/

2 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Dton339: 6:07am On Apr 19, 2021
It's well my brother

7 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by MrGoood: 6:09am On Apr 19, 2021
You will never understand how economy should work until you jet out and see how it’s elsewhere, Unfortunately the fans of the people dragging this country back don’t know the gravity of the sin they re committing, As a fan of a failure , You re indirectly killing people with your ignorance, O Ye sorry to you, They will still think they re right , wait for them.

176 Likes 12 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Dabronze(m): 6:11am On Apr 19, 2021
insecurity problem
power failure
FOREX devalution
High Tax
Political Power Tussle
Economy Crashing
Seccession
That's enough reason for them to leave
APC Next Level Agenda

122 Likes 7 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by EKONGKING: 6:11am On Apr 19, 2021
Nigeria is on its last legs . These western companies are just seeing writing on wall and are diverting away from oil and from risky region of the world.
Coal used to be king of the fuel in 19 th century,now it's a pale shadow .oil is king in 20 th century ,now sun and wind will the king in 21 st century

98 Likes 7 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by helinues: 6:21am On Apr 19, 2021
No, it's because it's no longer business as usual...

No free money like before..

Opportunity for local investors to up their games

Modified: Wailers have seen news to somersault on.. Na this kind of news they massage their ego.

Hiss!!!

8 Likes 4 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Tigaromil: 6:24am On Apr 19, 2021
Let's hear what our minister of petroleum has to say. Mr President over to you.
Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by NigeriaIsDoomed: 6:29am On Apr 19, 2021
Nigerians were warned that the walking corpse, fulani illiterate would wreck Nigeria's economy.
prior to 2015, Nigeria's economy was the fastest growing economy in Africa, inflation rate stood at a single digit, exchange rate was 200 to $1, FDI was pouring into the country and etc. unfortunately, today Nigeria is struggling to grow, inflation has gone hyper, naira becoming one of the worst performing currencies in the world, mass exodus of foreign investments, skyrocketing national debts, poverty capital of the world added to Buhari's record, country with the highest unemployment in the world loading and worst of all handing over the country to terrorists who are having a field day unchallenged.
Boko Haram, Iswap, Ansuru, killer fulani herdsmen, bandits, kidnappers, gunmen, ritual killings, yahoo yahoo everywhere.
If he weren't allowed to rule, his miscreants and pigs would be crying by now and disturbing the country about how their personal lord and saviour would have transformed the country into utopia.

173 Likes 15 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by ThEGodFaThEr101(m): 6:41am On Apr 19, 2021
This is what you get when you have a brain dead Nepa bill cum certificate holder as president.

47 Likes 3 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Nobody: 6:48am On Apr 19, 2021
The companies made a forecast long ago and commenced their withdrawal because they saw no NIGERIA again.

11 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by nakaman: 6:53am On Apr 19, 2021
they already left eket.
the north will not know what they have done to themselves until the oil they have been milking behind our back finally crashes and the east will still progress as business never ends.
I love the maker of this world.

73 Likes 2 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by owobokiri(m): 6:54am On Apr 19, 2021
My anger is that shell and other socalled oil majors are busy selling off oil blocks given to them by the federal government to develop to other oil exploration companies, whimsically, as if those OPL belongs to them! They have made billions of dollars this way and the fact that the federal government stands hands akimbo, doing nothing to stop this generational heist is simply stunning!

The oil wells belong to the country and not the oil companies! If they want to elope with the much they have already looted(we always hear they want to divest and run away, but they're always here to suck us dry), they can do so without auctioning off the countrys oil resources to the highest bidders and pocketing the money while living the Niger Delta as the most polluted place on planet earth!
It's Evil! The height of economic terrorism..

17 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by harmargedon: 6:58am On Apr 19, 2021
Animal in human skin.

36 Likes 4 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by bayelsaowei(m): 6:58am On Apr 19, 2021
Nigeria is heading for the rocks.

Insecurity, community insanity and hostility (which by the way should be directed to the FG and SG) and harsh economic policies has fast tracked the exit plans of the IOC''s. I hope we all can now be happy. ??

In addition crude oil would run defunct in the coming decades to seal our foolishness as a country.

6 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by johnmartus(m): 7:10am On Apr 19, 2021
Lamentation crying verywell.
NigeriaIsDoomed:
Nigerians were warned that the walking corpse, fulani illiterate would wreck Nigeria's economy.
prior to 2015, Nigeria's economy was the fastest growing economy in Africa, inflation rate stood at a single digit, exchange rate was 200 to $1, FDI was pouring into the country and etc. unfortunately, today Nigeria is struggling to grow, inflation has gone hyper, naira becoming one of the worst performing currencies in the world, mass exodus of foreign investments, skyrocketing national debts, poverty capital of the world added to Buhari's record, country with the highest unemployment in the world loading and worst of all handing over the country to terrorists who are having a field day unchallenged.
Boko Haram, Iswap, Ansuru, killer fulani herdsmen, bandits, kidnappers, gunmen, ritual killings, yahoo yahoo everywhere.
If he weren't allowed to rule, his miscreants and pigs would be crying by now and disturbing the country about how their personal lord and saviour would have transformed the country into utopia.

6 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by NigeriaIsDoomed: 7:14am On Apr 19, 2021
johnmartus:
Lamentation crying verywell.
Illiterate this your lines are stale and boring, counter my points with facts or am I lying? joke on you !

61 Likes 4 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Nobody: 7:18am On Apr 19, 2021
helinues:
[s]No, it's because it's no longer business as usual...

No free money like before..[/s]
Do you ever use your brain before you use your pen? sad

90 Likes 3 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by helinues: 7:19am On Apr 19, 2021
Nonexistent:
Do you ever use your brain before you use your pen? sad

Do you use pen to type on social media?

Or you are probably referring to yourself at emboldened

3 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by orikoku: 7:20am On Apr 19, 2021
Is because they knew Nigeria has expired.

1 Like 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Nobody: 7:27am On Apr 19, 2021
helinues:


Do you use pen to type on social media?

Or you are probably referring to yourself at emboldened
Online writers still use the word "written by" even though we both know they type with keyboard. You see why I keep saying that you BMC zoneBs don't have sense.

93 Likes 5 Shares

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Goldbw122: 7:29am On Apr 19, 2021
No one want to live where there is no development and always increase in everything..

3 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by helinues: 7:32am On Apr 19, 2021
Nonexistent:
Online writers still use the word "written by" even though we both know they type with keyboard. You see why I keep saying that you BMC zoneBs don't have sense.

This your argument is non-existent like your moniker.

" Written by "is mostly used for article not comments..

Why did you use pen when the conversation is on social media.

Tell this bunkum to kindergarten

3 Likes 1 Share

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Daum: 7:41am On Apr 19, 2021
Buhari ruined this country

I know someone, who before 2015 had a suv and a bus for business. He complained about Gej and voted Buhari. He was not hungry then, he was angry of what he said was massive corruption.

Today he treks.
He doesn't complain anymore. He only regrets voting buhari

74 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by IMASTEX: 7:56am On Apr 19, 2021
The reasons are very obvious to the blind, same reason the citizens are fleeing in droves.

3 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by ozark(m): 7:57am On Apr 19, 2021
Hmmm....
Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by zombieHUNTER: 7:57am On Apr 19, 2021
Why wouldn't they leave a country ruled by Buhari and supported by zombies....

Nigeria is doomed....
I went to market yesterday to buy some food stuff.... There's fire on the mountain

But I choose to look at the bright side ... we all die here.... Especially those chanting sai barber...

Zombies will elect someone worse than Buhari in 2023.... So there's no hope

13 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by ictjobber: 7:57am On Apr 19, 2021
Come 2023 Nigerians go still vote in another gargantuan failure to rule them... That's how useless my countrymen are

4 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by Nobody: 7:58am On Apr 19, 2021
Useless shithole now the deranged fools are preparing to elect anoda old senile drug pushing bastard to come and destroy whats left of the country

16 Likes

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by franchasng: 7:58am On Apr 19, 2021
shocked
Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by thundafire: 7:58am On Apr 19, 2021
Nigeria will soon be a goner

1 Like

Re: Why Shell, Chevron, Other Oil Majors Are Leaving Nigeria by lekki1444: 7:58am On Apr 19, 2021
wink

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