Shell stakes N612b on projects in Niger Delta

THE Shell Petroleum Development Company (SPDC) has taken the Final Investment Decision (FID) on two capital projects worth of $3.9 billion (N612 billion) in the Niger Delta.

Besides, the Nigerian National Petroleum Corporation, (NNPC), and its subsidiary, the Nigerian Petroleum Development Company, (NPDC), have expressed their readiness to professionally and efficiently run some of the assets and oil mining leases transferred to it by SPDC.

Shell in a statement at the weekend, identified the two projects whose FID had been taken as the Trans Niger Pipeline loop-line (TNPL) and the Gbaran-Ubie Phase Two works.

It disclosed that the total capital investment for the two bundles of projects was around $3.9 billion.

The Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, Mutiu Sunmonu, stated that the new projects had demonstrated Shell’s long-term commitment to Nigeria by clearly signaling its intent for the strategic direction of Shell in Nigeria.

Sunmonu also stated that sections of the TNP had been heavily impacted by sabotage and crude oil theft.

According to him, the design of the TNPL includes improvements, which make the pipeline better protected against crude oil theft and sabotage.
This, Sunmonu said, should help to reduce pollution related to criminal activity, which was a key aspect of a 2011 United Nations Environment Programme (UNEP) report on Ogoniland.

“These investments will help to secure energy supplies for domestic and international markets. The TNPL project demonstrates the tangible steps SPDC and its partners are taking to tackle the scourge of criminal activity – pipeline sabotage and crude theft in the Niger Delta, which is the cause of so much environmental and economic damage in this region.

“Nigeria remains an important part of Shell’s portfolio, with clear growth potential, particularly in deepwater and onshore gas. This strategic review marks another step in re-focusing the SPDC portfolio,” Sunmonu commented.

Meanwhile, the Group Managing Director of the NNPC, Andrew Yakubu stated at the weekend in Warri, Delta State, that the corporation, along with its flagship company, NPDC, was repositioning to ensure that its acquired assets remain productive to ultimately boast the revenue inflow to the Nigerian economy.

“With the divestment of Shell, NPDC is the top and the only option for indigenous participation that will replace companies like SPDC and other companies that wanted to divest their equities. So NPDC therefore, has taken over this obligation of value addition as the flagship operator of the upstream business of NNPC. NPDC is the gateway of capacity development and capability development of the upstream activities in Nigeria”, Yakubu said.

He said the activities of the NNPC/NPDC in Warri has made NPDC the highest local producer of gas and this has gone along way in meeting the Federal Government’s aspiration in the area of power generation, stressing that with the new status, NPDC remains the biggest indigenous gas supplier in Africa.

The NNPC helmsman noted that as a socially responsible corporation, the NNPC/NPDC would step up its activities in the area of providing social amenities such as classroom blocks, scholarship, health facilities, roads and water to communities where its operations are domiciled.

He added that by partnering with the various tiers of government in providing basic amenities to oil bearing communities, a conducive environment that would guarantee smooth operations of the acquired assets would be provided.

According to him, the assurances from the Warri communities indicate that the coming of NPDC would help in sustaining community development efforts in line with international best practices.

Source: The Guardian

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *