Friday, January 28, 2022

Niger-Delta oil no longer suitable for our business: Shell CEO Van Beurden

Shell has been beset by myriads of challenges ranging from oil theft to pipeline sabotage, as well as agitations by local communities over oil spills.

• May 19, 2021
Shell CEO Van Beurden
Shell CEO, Ben Van Beurden [Photo Credit: World Oil]

Multinational oil giant Shell has revealed its intention to withdraw from Nigeria’s onshore oil sector.

Making this known at Shell’s annual general meeting on Tuesday, the CEO, Van Beurden, said his organisation was in talks with the Nigerian government to work out how to exit its onshore licenses.

Mr Beurden explained that Niger Delta oil is no longer suitable for its business, adding that the incessant cases of oil theft and sabotage and spillage don’t fit with the organisation’s risk appetite.

“The balance of risks and rewards associated with our onshore portfolio is no longer compatible with our strategic ambitions,” Mr Beurden said. “We cannot solve community problems in the Niger Delta.”

He further disclosed that Shell proposed disengagement from Nigeria’s onshore sector will not affect its offshore operations, adding that the organisation is still very much interested in exploring the country’s deep water and natural gas.

Shell, had in the cause of its onshore operations in Nigeria, encountered numerous problems ranging from oil theft and pipeline sabotage, as well as lawsuits instituted by local communities over oil spills.

In February, Mr Buren while decrying the increasing sabotage and theft of oil in Nigeria disclosed that the multinational giant was considering sales of its onshore assets in Nigeria.

He said that growing cases of theft and sabotage in the Niger-Delta region could force the organisation to reconsider its onshore operations in Nigeria.

Last week, Peoples Gazette reported how Bayelsa and Rivers Communities along the 14-inch crude trunk line operated by Shell  in the Niger Delta region suffered spillage in April as 276 barrels of crude oil pervaded their soils and water in three incidents.

Also in April, The Gazette reported two different cases of oil spillage in Bayelsa communities.

These spillages have continued to negatively affect the region’s environment, decreasing its agricultural productivity due to farmland degradation, and causing pollution of traditional fishing grounds and destruction of aquatic life.

In January, a Dutch court ordered the multinational oil giant to pay compensation in a case brought by four Nigerian farmers thirteen years ago, accusing the company of polluting their land. 

The appeal court in The Hague ruled that Shell’s Nigerian subsidiary will pay for the damage wrought in the Niger Delta by its oil spills.

However, Shell has introduced Net-Zero plans to address the environmental issues caused by its operations.

The Net Zero plan seeks to end carbon dioxide emissions by 2050.

More from Peoples Gazette

Economy

Buhari regime will continue to borrow without subsidy removal: Femi Adesina

“You know how much could have been saved if the subsidy was removed and how it could have been diverted to other areas and spheres of national life.

President Muhammadu Buhari

Education

Buhari regime failed to meet UNESCO education benchmark: Afe Babalola

“They have consistently failed to meet the UNESCO funding benchmark of 26 per cent of every country’s budget,”

SUFFERING NIGERIANS

NationWide

Buhari regime introducing more taxes will worsen Nigerians’ suffering: Experts

Mr Buhari’s regime recently introduced an excise duty of N10 per litre on all non-alcoholic, carbonated, and sweetened beverages.

Fayose, Udom

States

Gov. Udom committed malpractice, supported Fayose, claims Segun Oni’s group

Mr Arokodare said Mr Udom also allegedly threatened to arrest and lock all of these delegates if any of them should come into the hall.

Economy

Lagosians will miss if they don’t reelect me in 2023: Sanwo-Olu

The governor, who is on a publicity blitz to promote his rail and other transportation projects in Lagos noted that his government planned to reduce gridlock in Lagos.

Economy

CBN begs cement, steel manufacturers to reduce products’ prices

“We are aware that some of our cement manufacturers are producing for both the domestic and export market…”

Showbiz

Chris Brown sued for drugging, raping woman

Chris Brown physically assaulted his then-girlfriend Rihanna and was sentenced to five years’ probation, one year of counselling and six months of community service.