The Managing Director of Shell Petroleum Development Company and Chair of Shell Companies in Nigeria, Mr. Osagie Okunbor, has reassured Nigerians that the oil giant is not exiting the country despite moves to divest its onshore assets. Okunbor made this clear during a panel session at the Nigeria Economic Summit on Tuesday, where discussions centered on the future of Nigeria’s oil and gas sector.
Themed “Fuelling Growth: The Future of Oil and Gas,” the session explored the evolving energy landscape and opportunities for growth in Nigeria’s petroleum industry.
Shell Deepens Investment in Nigeria
Okunbor explained that Shell is focusing on deepwater operations, where the company has significant technological and financial advantages. He disclosed that Shell is committing $5 billion to a single deepwater project, emphasizing that Shell’s long-term interests in Nigeria remain intact.
“Shell is not leaving Nigeria. We are not going anywhere and will be together for a long time,” Okunbor stated. He clarified that the onshore asset divestment involves transferring shares to a consortium of four companies that were rigorously selected through a transparent process.
Nigeria’s Oil and Gas Industry Still Strong
Countering pessimism about the future of Nigeria’s petroleum sector, Okunbor insisted that the industry is not in decline.
“The Petroleum Industry Act (PIA) and supporting regulations have placed us in a better position than before,” he noted, adding that recent presidential directives are fostering improved coordination across the sector.
He further emphasized the need for Nigerians to drive economic growth and diversification, noting that oil and gas will remain essential to the economy. “Economic diversification should be additive, not a replacement of oil and gas,” he said. “Both sectors must grow together. In the past, agriculture was replaced by oil as the main economic driver. What we need now is for both sectors to thrive side-by-side.”
Insecurity Hindering Growth in the Niger Delta
Okunbor acknowledged that insecurity in the Niger Delta continues to hinder growth in the industry and has contributed to international oil companies scaling down their onshore operations. He also revealed that the insecurity has affected the operations of Nigeria LNG (NLNG), with the company’s six production trains running at only 62% capacity.
“Though NLNG has no issues with financing, its capacity utilization was previously in the 40s and is now at 62%. This is due to reduced upstream investments and persistent insecurity in the Niger Delta,” Okunbor said.
Petrol Shortages to Ease Soon – MRS Holdings
In related developments, the Group Chief Operating Officer of MRS Holdings, Amina Maina, provided updates on the current petrol shortage across the country. She assured Nigerians that the situation would improve as more supply becomes available from the Dangote Refinery.
“I expect the fuel queues to disappear within days. The Dangote Refinery has started selling petrol, and I know trucks are already being dispatched, with a vessel currently loading. By the end of the week, there will be more petrol in circulation,” Maina stated.
Conclusion
The discussions at the Nigeria Economic Summit underscored the importance of sustaining oil and gas investments while driving economic diversification. Despite onshore divestments, Shell’s renewed commitment to Nigeria’s deepwater sector and the anticipated relief in fuel supply from the Dangote Refinery offer hope for stability in the sector.
Stay tuned to VOP News for more updates on Nigeria’s energy sector.
