- February 12, 2024
- Posted by: Imo Udokang
- Category: General, News
Shell PLC has denied speculations that it was leaving Nigeria after selling its onshore business in the Niger Delta.
Contrary to claims making waves on social media, Shell, an international energy and petrochemical company, is selling its onshore business in Nigeria but is not leaving the country,
In a meeting with the Managing Director and Chief Executive Officer of the Oil and Gas Free Zones Authority (OGFZA), Alh Bamanga Jada, the Shell management team said it intended “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.”
Jada received the delegation from Shell Nigeria Gas (SNG) and Shell Energy Nigeria on a courtesy call on Thursday, 8th February, at the authority’s office in Maitama, Abuja.
The Managing Director of Shell Nigeria Gas, Mr. Ralph Gbobo stated in the meeting that SNG’s main business is downstream gas distribution to industries in Nigeria with a presence across the nation at Otta, Aba and Port Harcourt and currently penetrating Bayelsa state. He also stated that there is an ongoing effort to collaborate with the government of Oyo state.
He further disclosed that SNG currently distributes about 60-70 million scuffs daily, hinting to the OGFZA boss and management that SNG is now diversifying into offshore activities and gas distribution.
While announcing the changes in its Nigerian business structure, the company said, subject to following regulatory approvals, it would sell Shell Petroleum Development Company of Nigeria Limited (SPDC).
The onshore business is to be acquired by Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group. The companies are ND Western, Aradel Energy, First Exploration and Production (First E&P), Waltersmith, and Petrolin.
The SPDC is the operator of the NNPC/SPDC/Total Energies/NAOC joint venture, which comprises Nigerian National Petroleum Company Limited (55 per cent holding), SPDC (30 per cent), Total Energies (10 per cent), and the Nigerian Agip Oil Company Limited (5 per cent).
The delegation, however, made a case for the removal of bottlenecks for accessibility to enable them to carry out their enumeration exercise in the Onne/Ikpokiri Oil and Gas Free Zone in Rivers State.
Responding to the delegation, the OGFZA boss assured them of the authority’s readiness for collaboration, stating that OGFZA is responsible for promoting, securing and sustaining investments in the nation’s oil and gas-free zones.
He urged them to explore other gas hubs in the Oil and Gas Free Zones such as Liberty Oil and Gas Free Zone in Akwa Ibom State and Orashi Energy City in Imo state which has recently been declared a free zone under the regulation of OGFZA by President Bola Ahmed Tinubu.
He said the newly declared free zone is the largest in Nigeria with a land mass of over 140,000 hectares and a huge gas deposit. He further disclosed that Orashi Energy City has the potential to attract over US$8b of Foreign Direct Investment.
Jada then assured the visiting delegation of the authority’s commitment to remove all bottlenecks that might cause a hindrance to ease of doing business in the zones, adding that the Authority would continue to provide a conducive environment for investors operating in the zones.
Jada applauded SNG for their interest in committing more resources and investments into Nigeria and their confidence to partner with OGFZA. He clarified the notion that investors are exiting Nigeria to neighbouring countries, affirming that investors are not leaving Nigeria but rather diversifying and making new investments into more environmentally friendly energy sources, stating that gas is very critical to national development.
The OGFZA helmsman on behalf of President Bola Ahmed Tinubu and the Honourable Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, assured the investors of the protection and security of their investments in Nigeria.
Meanwhile, in a bid to ensure additional investment in the oil and gas sector thereby driving the ‘Renewed Hope mandate’ to expand investment and also create jobs to help ease the unemployed population in Nigeria, Jada through his agency has secured a massive investment in the energy, Oil and gas sector with the introduction of APM Terminals Global who is currently constructing a $112 million state-of-the-art facility with an addition of $500 million over the next four years to boost operational efficiency and drive standard delivery in capacity and also create over 1.8million direct and indirect jobs.
This was made known at a meeting hosted by the Honourable Minister of the Federal Ministry of Industry, Trade, and Investment; Dr Doris Uzoka-Anite, on Thursday, 8 February, at the Bank of Industry head office in Abuja.
Also in attendance was Mr Olasupo Olusi, the Managing Director of the Bank of Industry; Emmanuel Nwagwu, COO of Nesgas; Frederik Klinke, COO of APM Terminals Nigeria; Keith Svendson, CEO of APM Terminals Global; Bamanga Usman Jada, MD/CEO of the Oil & Gas Free Zone Authority and a host of others.
APM Terminals Global further pledge its commitment to breathe fresh life into the oil and gas sector in support of the industrialization quest of Nigeria and also to boost local production of Oil and gas to attract Foreign Direct Investment FDI and save forex.
While addressing the meeting, Bamanga disclosed that investments and job creation in Nigeria’s oil and gas industry is something of high interest and it will also drive employment for 900,000 skilled and unskilled workers.
He disclosed that; “The Special Economic Zones have become magnets for Foreign Direct Investment FDI, thanks to Mr President’s unwavering support for enhancing productivity and building a resilient and sustainable economy.”
He further stated that other massive investments are ongoing in the oil and gas sector with the addition and construction of a 50,000 metric ton storage facility by Nesgas LPG which will be a game changer in both domestic and international LPG markets.
“The construction of this facility is projected to create over 100,000 direct employments and help launch 500,000 enterprises. This venture underscores the untapped opportunities across Nigeria and Africa and positions Nigeria as a key player in the global gas supply chain.” He said.
Dr Uzoka-Anite also applauded and welcomed their unwavering dedication to the massive growth by injecting life and hope into the Nigerian economy as she said it’s a clear demonstration of sharing the same vision to ensure more investors see Nigeria as a destination for investment with massive Return on Investment ROI due to the large population and enormous availability of natural resources in commercial quantity.
She also disclosed her readiness and that of the government to assist when the need arises.
“Our administration is committed to making doing business seamless. With our policies thereby expunging all bottlenecks, I am more than sure that in the next few months, the surge in investment in Nigeria will be on the rise. We are committed to making the ease of doing business work in Nigeria,” she stated.
Speaking on behalf of Alternative Petroleum Power Limited (APPL), Mr Emmanuel Nwagwu harped on the value of green energy. He spoke about the achievements of APPL, which is expected to export 520 metric tons of green and blue hydrogen and generate 300,000 jobs directly and indirectly.
Mr Keith Svendson disclosed that the nearly $100 million in investments that APM Terminals has made in the port infrastructure of Nigeria will assist towards sustainable energy solutions which will tap into Nigeria’s enormous natural gas reserves. He also stressed the need for the government to ensure a total overhauling and upgrade of Apapa Ports as it would enhance commercial and economic growth thereby attracting additional investment into the country.
culled from https://thestreetjournal.org/we-go-nowhere-shell-refutes-speculation-of-leaving-nigeria-after-meeting-bamanga-jada-md-oil-and-gas-free-trade-zone-photos/