The federal government is weighing some options as discussions with Anglo-Dutch oil company, Shell Petroleum Development Company, begin over its plan for total divestment from onshore operations in Nigeria.
The Minister of State, Petroleum Resources, Chief Timipre Sylva, yesterday in Abuja listed three possible options being considered as comprising a takeover of the company’s stake in the oil and gas industry by the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC); acquisition by indigenous operators and involving a mixture of local players and other foreign independent operators in the process.
The Anglo-Dutch energy giant has been gradually selling its onshore assets for over a decade in Nigeria.
Shell, operator of Nigeria’s onshore oil and gas joint venture (JV) SPDC, had recently indicated it would no longer continue to be exposed to the risk of theft and sabotage.