Shell Plc has dismissed reports that it may leave Nigeria after selling its onshore business in the Niger Delta.
Recall that Shell said on Tuesday that it has “reached an agreement to sell its oil business in the Niger Delta, the Shell Petroleum Development Company of Nigeria Limited” to Renaissance Africa Energy.
The announcement sparked a number of reactions on various social media channels, with many speculating that Shell was leaving Nigeria.
Contrary to rumours, Shell stated that it intends “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy.”
Speaking on the fate of the company employees, Shell said, “We do not expect a loss of employment. SPDC’s staff will continue to be employed by the company as it transitions to new ownership.”
Shell acknowledged that it owned three additional major operations in Nigeria that were not part of the SPDC transaction.
Shell Nigeria Exploration and Production Company Limited produces oil and gas in the deepwater Gulf of Guinea; Shell Nigeria Gas Limited supplies gas to domestic industrial and commercial customers; and Daystar Power Group offers integrated solar power to commercial and industrial businesses throughout West Africa.
Furthermore, Shell said that it holds a 25.6 per cent interest in NLNG, which produces and exports LNG to global markets. It also emphasized that Shell’s interest in NLNG is “outside the scope of this transaction”.
