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Shell Nigeria to offload oil assets
- Set to begin the transition to clean energy
- The Nigerian government wants Shell to retain SPDC joint venture
Shell, one of the leading oil exploration firms in the country is set to begin the divestments of its oil assets in the country in a move to commit to cleaner energy. The company has for a long time been victims of attacks on its assets, crude oil theft, and the rising number of litigation cases from host communities.
The Nigerian government is, however, seeking to negotiate the terms of its divestment which will include retaining some onshore operations. Minister of State for Petroleum Resources, Timipre Sylva while speaking on the exit of the company said ”where Shell has completely divested from a sector is not good for us”. He noted that the Federal Government is in talks with Shell to negotiate its planned exit from the sector.
Ben Van Beurden, the Chief Executive Officer, Shell who spoke at its just-concluded Annual General Meeting (AGM) 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”.