Despite Shell’s ongoing divestment of onshore assets in Nigeria, the Managing Director of Shell Petroleum Development Company and Chair of Shell Companies in Nigeria, Mr. Osagie Okunbor, emphasized that the company is not leaving Nigeria. During a panel at the Nigeria Economic Summit on Tuesday, Okunbor explained that Shell is refocusing its efforts on deepwater oil operations, where it has both technological and financial advantages.
Okunbor highlighted that Shell continues to make significant investments in Nigeria, including a $5 billion deep offshore project. Addressing concerns over Shell’s onshore asset divestment, he noted that the company has gone through a rigorous selection process to hand over those assets to a consortium of four companies. “Shell is not leaving Nigeria. We are not going anywhere and we will be together for a long time,” he stated.
He also refuted pessimistic views about Nigeria’s oil and gas sector, insisting that the industry is far from decline. Okunbor pointed to the positive impact of the Petroleum Industry Act (PIA) and the supporting regulations, which he believes have strengthened the sector. He added that recent presidential directives are bringing a much-needed coherence to the industry.
Diversifying Nigeria’s Economy: Oil and Gas Still Vital
During the same panel discussion, Nigeria Liquefied Natural Gas (NLNG) Managing Director, Mr. Philip Mshelbila, stressed the importance of growing and diversifying Nigeria’s economy. However, he argued that diversification should not mean replacing the oil and gas industry but adding new sectors to ensure both grow together.
He noted that while Nigeria has enormous economic potential, insecurity in the Niger Delta region has stifled the growth of the oil and gas industry. This challenge has also affected NLNG’s operations, with its six trains operating at only 62% capacity. Mshelbila attributed the reduction in capacity to slowed investment in upstream production and continued insecurity.
Fuel Shortages to Ease Soon, Says MRS Holdings COO
Meanwhile, addressing the ongoing petrol shortages in Nigeria, MRS Holdings Group COO, Amina Maina, assured that relief is on the way as more fuel is expected to be distributed from the Dangote Refinery. She noted that the refinery has already started supplying petrol, and more trucks and vessels are being loaded. Maina expressed confidence that by the end of the week, the fuel supply situation would improve, and queues at filling stations would ease.
