FG Begs Shell to Shelve Divestment Plans

Federal government is encouraging Royal Dutch Shell Plc to keep its onshore oil and gas business in the country instead of divesting it, as the company seeks to focus more on cleaner energy and offshore production.

Bloomberg reported that Timipre Sylva, minister of state for petroleum resources, told reporters in Abuja that even as the government is in discussions with Shell about its future in the country, “some actually feel also that Shell should not hurriedly divest and to at least stay” onshore.

“To have a situation where Shell has completely divested from a sector is not good for us,” the minister said.

The Anglo-Dutch energy giant has been gradually selling its onshore assets for more than a decade in Nigeria as it seeks to put aside problems related to raptured pipelines and legal battles with local communities.

Ben van Beurden, chief executive officer (CEO), Shell, had said Tuesday that the company was in conversations with the Nigerian government on “a way to move forward” as oil spill risks associated to its onshore were not aligned with its energy transition strategy. However, he did say that it would focus on its deep-water and gas investments in the country.

“Shell has announced their intention to divest from their onshore assets and focus more on the offshore,” Sylva said, adding “We are actually in talks with them on how we are going to achieve it.”