₦airaland Forum

Shell Plc agreed to sell its Nigerian onshore oil assets to a consortium of local companies for more than $1.3 billion.

If approved by the government, the transaction would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region. Beyond the initial price tag, Shell said it will receive additional payments of as much as $1.1 billion.

The transaction would fulfill Shell’s long-term goal of extracting itself from a challenging operating environment in the Niger Delta region.

ogododo:
https://www.bloomberg.com/news/articles/2024-01-16/shell-to-sell-nigeria-onshore-oil-business-for-1-3-billion

IOCs began abandoning onshore fields when sabotage of oil pipelines by vandals and oil thieves became a norm. The situation was made worse by NNPC’s inability to pay its share of costs for oil production.

“It is more profitable for IOCs to go offshore because the deeper the offshore, the more the stock oil. No community issues, less security threat, and most importantly the easy access to export the crude.”

“These land locations were doing well for Nigeria and were operated by the multinationals, until recently when too many community issues, pipe vandalism, and oil theft emerged. And upon this, you still pay charges to the government.”

........ Shell extracting itself from a challenging operating environment in the Niger Delta region.