Oil giant, Royal Dutch Shell has disclosed its intentions to divest from its onshore holding through the joint venture SPDC.
According to the oil giant, it has contacted the Nigerian Government on its plans to divest from the country citing increased oil spills experienced in the Niger Delta region as a result of pipeline sabotage along with other issues as reasons for its decision.
This was disclosed by the CEO, Ben van Beurden on Tuesday at the company’s annual meeting.
Speaking on the development, he said, “We cannot solve community problems in the Niger Delta, that’s for the Nigerian Government perhaps to solve. We can do our best, but at some point in time, we also have to conclude that this is an exposure that doesn’t fit with our risk appetite anymore.”
The CEO added that Shell is in talks with the FG on the way forward as the company has drawn its own conclusion.
Minister of State for Petroleum Resources, Timipre Sylvia confirmed that the government was engaged in talks with the oil form on the process.
According to Reuters, there are considerations that the stakes be transferred to SPDC or another indigenous company.
Frontpage December 9, 2019