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Shell to offload sole offshore Nigerian oil assets for a cleaner energy

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Petroleum giant, Shell, to offload sole offshore Nigerian oil assets for a cleaner energy

Shell’s divestment could deal a fresh blow to the fiscal plans of the Nigerian government, about 90% of whose revenue comes from oil, as it rebalances from the oil crash of 2020.

Royal Dutch Shell will offload the last of its Nigerian assets in a move to rein back risks including sabotage, theft and litigation with host communities in Africa’s largest oil producer, and commit its future to cleaner energy elsewhere, the oil super-major said.

But the government wants Shell, with which it runs a joint venture vehicle called Shell Petroleum Development Company (SPDC), to at least retain onshore operations for now rather than undertake a complete exit from the country.

“Nigeria is in its talks with Shell include handing over Shell’s stakes in the assets to the Nigerian Petroleum Development Company…. inviting bids from Nigerian indigenous producers, or having a mixture of local firms and foreign independent producers to bid for the assets,” Minister of Petroleum and Natural Resources Timipre Sylva told journalists in Abuja.

Getting to a point “where Shell has completely divested from a sector is not good for us,” he added.

The company, which holds a 30% in SPDC, translating to 156,000 barrels per day in 2020, has sold nearly half of its Nigerian investments in the past 10 years and considers its Nigerian operation a “headache” on account of endless litigation arising from oil spills.

But the government wants Shell, with which it runs a joint venture vehicle called Shell Petroleum Development Company (SPDC), to at least retain onshore operations for now rather than undertake a complete exit from the country.

“Nigeria is in its talks with Shell include handing over Shell’s stakes in the assets to the Nigerian Petroleum Development Company…. inviting bids from Nigerian indigenous producers, or having a mixture of local firms and foreign independent producers to bid for the assets,” Minister of Petroleum and Natural Resources Timipre Sylva told journalists in Abuja.

Getting to a point “where Shell has completely divested from a sector is not good for us,” he added.

The company, which holds a 30% in SPDC, translating to 156,000 barrels per day in 2020, has sold nearly half of its Nigerian investments in the past 10 years and considers its Nigerian operation a “headache” on account of endless litigation arising from oil spills.

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