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Shell To Exit Nigeria As Company Bemoans Hostile Business Environment
. “We cannot solve community problems in the Niger Delta.” – Shell
Multinational oil giant Shell has disclosed its plans to withdraw from Nigeria’s onshore oil sector, noting that its continued operation in the beleaguered Niger Delta region is against the interest of the company.
The CEO, Van Beurden, announced the development at the company’s annual general meeting on Tuesday.
Ekohotblog reports that Beurden disclosed that his organisation was already meeting with the Nigerian government to work out ways on how to relinquish its onshore licenses.
Beurden explained that Niger Delta oil is no longer favourable for its business, adding that the frequent cases of oil theft and sabotage and spillage don’t fit with the organisation’s strategic aspirations
“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.”
READ ALSO: UK Supreme Court Rules That Niger Delta Communities Can Sue Shell In English Courts
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, 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.
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