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Tag: Shell

  • Obololi Spill: Shell shuts Nun River-Kolo Creek crude oil line in Bayelsa

    Obololi Spill: Shell shuts Nun River-Kolo Creek crude oil line in Bayelsa

    The Shell Petroleum Development Company of Nigeria (SPDC) on Friday announced that it has shut crude feeds into the 16 inch Nun River-Kolo Creek crude trunkline.

    The development follows an oil leak on the pipeline at Obololi community, a coastline community along the River Nun in Southern Ijaw Local Government Area in Bayelsa.

    Mr Chukuwemka Woke, Director-General, National Oil Spills Detection and Response Agency (NOSDRA) had told NAN that the spill occured on Feb. 16 and was reported on Feb. 17.

    The shutdown was announced in a statement by Mr Michael Adande, a Spokesman for SPDC in a reaction to response requst by NAN after the spill.

    According to the statement, the shutdown had stopped the leak while remediation efforts are ongoing to contain the spread of the crude and its impact on the environment.

    Adande said: “The Shell Petroleum Development Company of Nigeria Limited (SPDC), operator of the SPDC Joint Venture (SPDC JV), confirms that its Oil Spill Response Team has identified a leak from one of the SPDC JV assets located in the Obololi community, Southern Ijaw LGA of Bayelsa state.

    “The Team immediately isolated the line and suspended production into the line.

    “The regulatory authorities and other stakeholders have been notified. Plan to conduct a regulator led Joint Investigation Visit (JIV), to determine the cause and impact of the spill is ongoing.”

    Although the SPDC did not specify the volume of oil production affected by the shutdown, the 16 inch pipeline evacuates oil produced from various oil fields within Bayelsa swamps and feeds the SPDC’s manifold in Kolo.

    The NOSDRA DG,  on Thursday said that the cause of the leak and estimated volume discharged was yet to be determined because the pipeline was beneath the river.

    The regulator said that it has recommended a diversion of the river to a temporary dam to give access to the joint investigating team to the leak point for examination.

    Recalled that following the contamination of the Nun River, Chief Target Segibo, Chairman of Southern Ijaw LGA, who earlier visited the impacted Obololi community pledged to provide alternative water source for the people.

    NAN

  • What we want before sale of Shell subsidiary – Niger Delta women

    What we want before sale of Shell subsidiary – Niger Delta women

    A coalition of Niger Delta groups, made up of mostly women, has described Shell UK’s planned sale of its Nigerian subsidiary without consulting host communities as unhealthy and unacceptable.

    The women’s position was presented by Mrs Emem Okon of Kebetkache Women Development and Resource Centre during a protest in Yenagoa on Friday.

    Okon led the coalition of no fewer than 15 Niger Delta-based women groups to protest the planned sale of Shell’s onshore assets without adequate remediation arrangements.

    She said it was unhealthy, unethical and unacceptable for the company to make such decision without consulting the communities, saying, “they can’t leave behind a polluted environment”

    “We are here to protest international oil companies’ divestments from onshore assets in the Niger Delta region, leaving behind a devastated environment.

    “The toxics from oil spills and hydrocarbon pollution in the region have adversely affected our environment and even the fertility of our men,” she said.

    Okon urged the Federal Government to take steps towards making oil companies to remediate their operational host communities before considering requests for divestment.

    Also speaking during the protest, Dise Ogbise-Goddy of Do Foundation, said it would be unjust for Shell UK to carry out the divestment plan without restoring the Niger Delta ecosystem.

    She said that Niger Delta communities had been hugely polluted and environmentally devastated due the operations of the company.

    According to her, the severe impact of oil exploration activities on agriculture, fishing and hunting has adversely affected the health of Niger Delta people.

    “There is need for appropriate consultation with all stakeholders. We urge the Federal Government not to approve the request by Shell UK.

    “The planned sale of oil assets in Nigeria should not be allowed until all polluted farmlands in the Niger Delta have been cleaned and restored.

    “We are worried about the swiftness of some of these divestments without clear cut guidelines to resolve pollution issues in the region.

    “Part of our worries is that the reputations of the new corporations acquiring the international oil companies are unknown to the people of the region,” she said.

  • Tinubu hails Shell’s $5bn Bonga north investment

    Tinubu hails Shell’s $5bn Bonga north investment

    President Bola Tinubu on Monday lauded the 5 billion dollars Final Investment Decision (FID) made by Shell and its partners on the Bonga North Deep Offshore Field.

    The FID marks Nigeria’s first deepwater oil project in more than a decade. It underscores the transformative impact of the Tinubu administration’s policies and reforms in attracting investments to the oil and gas sector.

    This achievement, according to a statement from the President’s spokesman, Mr Bayo Onanuga, reflected the government’s commitment to creating a more competitive and investor-friendly environment.

    The Bonga North oilfield, located 130 kilometers offshore in Oil Mining Lease (OML) 118, represents an estimated investment of 5 billion dollars and is expected to yield approximately 350 million barrels of crude oil.

    Shell holds the largest operational stake in the project, with 55 per cent, while other partners include the Nigerian National Petroleum Corporation (NNPC), ExxonMobil, TotalEnergies, and Eni.

    In the statement, President Tinubu emphasised that the FID signalled renewed confidence in Nigeria’s energy sector and underscored the effectiveness of the administration’s strategic focus on creating a robust and competitive investment climate.

    “The Renewed Hope Agenda fundamentally focuses on attracting investments to transform the Nigerian economy and deliver prosperity to our people.

    “We designed our policies and reforms from the start of my administration to achieve this goal. Shell and its partners’ decision to invest in Bonga North affirms the success of our efforts,” President Tinubu said.

    He further assured: “We will continue to offer the necessary support to ensure their success and the realisation of Nigeria’s energy potential.”

    The President’s engagement with global energy stakeholders has been a key factor in this wave of renewed investments.

    In July 2023, during a high-level meeting with Shell’s global leadership, President Tinubu declared, “We are open for business and serious about creating a stable, predictable, and investor-friendly environment.”

    Additionally, Presidential Directives issued in early 2024 further reinforced this commitment, accelerating regulatory approvals, reducing operational costs, and introducing competitive fiscal incentives.

    “The Bonga North project is the second major initiative under President Tinubu’s transformative Presidential Directives 40, 41, and 42, which were issued in the first quarter of 2024.

    “These directives aim to improve regulatory clarity, shorten project timelines, and incentivise investment in Nigeria’s energy sector.”

    Earlier this year, the Ubeta oilfield (OML 58), the first project under these initiatives, also achieved an FID through a partnership between TotalEnergies and NNPC Limited.

    The Ubeta project, dormant since its discovery in 1965, is expected to produce 350 million standard cubic feet of gas per day, boosting domestic supply and enhancing Nigeria’s presence in the global energy market.

    Ms. Olu Verheijen, Special Adviser to the President on Energy, highlighted the significance of the Bonga North FID, saying it dispelled misconceptions about International Oil Companies (IOCs) exiting Nigeria.

    “Instead, we are witnessing a strategic pivot of IOCs-powered capital and technical capacity to deepwater and integrated gas projects.

    “These projects align with President Tinubu’s vision of transforming Nigeria into a global energy hub,” she noted.

    She added that the divestments from onshore operations opened opportunities for local oil and gas companies to expand, thus creating a solid foundation for Nigeria’s energy future.

    “The success of Bonga North and Ubeta demonstrates the efficacy of the reforms and directives championed by the President.

    “These projects will trigger broader investments that will revolutionise Nigeria’s power generation, transportation, and manufacturing sectors.

    “As we look ahead to 2025, we anticipate further FIDs from both international and domestic players, marking a new era of growth and opportunity for Nigeria.”

    Shell UK plans Bonga field output expansion by 110,000 bpd

    Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell UK plc, has  announced a final investment decision (FID) on Bonga North, a deep-water project off the coast of Nigeria.

    The project to harness more than 300 million barrels of oil reserve will add an additional 110,000 barrels per day (bpd) to Nigeria’s daily oil output when completed.

    Zoë Yujnovich, Shell UK’s Integrated Gas and Upstream Director, disclosed this in a statement made available to newsmen on Monday.

    According to Yujnovich, Bonga North will be a subsea tie-back to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility which Shell operates with a 55 per cent interest.

    He said that Bonga North project involved drilling, completing and starting up 16 wells (eight production and eight water injection wells), modifications to the existing Bonga Main FPSO and the installation of new subsea hardware tied back to the FPSO.

    “The project will sustain oil and gas production at the Bonga facility;  Bonga North currently has an estimated recoverable resource volume of more than 300 million barrels of oil equivalent (boe) and will reach a peak production of 110,000 barrels of oil a day, with first oil anticipated by the end of the decade.

    “This is another significant investment which will help us to maintain stable liquids production from our advantaged upstream portfolio,” he said.

    Yujnovich added that Bonga North would help to ensure Shell’s leading Integrated Gas and Upstream business continued to drive cash generation into the next decade.

  • Okunbor expresses optimism on Nigeria’s oil, gas future

    Okunbor expresses optimism on Nigeria’s oil, gas future

    Managing Director of Shell Petroleum Development Company Limited (SPDC) and Chairman of Shell Companies in Nigeria, Osagie Okunbor, shared an optimistic outlook on the future of Nigeria’s oil and gas industry during a panel session at the just concluded Nigeria Economic Summit in Abuja.

    Speaking on the theme “Fuelling Growth: The Future of Oil and Gas,” Okunbor addressed concerns surrounding the industry, stressing it is far from declining. “With the enactment of the Petroleum Industry Act and other supporting regulations, the industry is in a much better place,” he remarked. He also noted that recent presidential directives have introduced much-needed coherence to the sector.

    Okunbor highlighted Shell’s commitment to its operations in Nigeria, primarily through SPDC and Shell Nigeria Exploration and Production Company (SNEPCo). He said: “Through these companies, we collaborate with partners on knowledge sharing, resource pooling and risk mitigation, leading to more efficient and sustainable operations.”

    He emphasised the importance of Shell’s technical expertise and resources in supporting Nigerian operations, which contribute to technological advancement and improved efficiencies.

    In addition, Okunbor underscored Shell’s dedication to local content development, which has helped to boost economic growth and create job opportunities for Nigerians. “We actively engage with local communities to address their needs and build sustainable relationships, demonstrating our commitment to social responsibility,” he said.

    Okunbor added that Shell would continue to power progress in Nigeria through sustained collaboration for the socio-economic development of the country.

  • We did not approve sale of Shell assets — NUPRC

    We did not approve sale of Shell assets — NUPRC

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says it has not approved Shell International Plc’s bid to sell its onshore assets to Renaissance.

    A statement signed by NUPRC Head, Public Affairs and Corporate Communication, Mrs Olaide Shonola titled: “Re-Boon for Nigeria as Shell’s $1.3bn assets sale gets regulatory nod” read, “The attention of the has been drawn to a publication in the Businessday of September 11, 2024, purporting that the Commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

    “It must be firmly stated that the information contained in the publication did not emanate from the Commission.

    “As part of the Commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time.

    The Commission further called on industry stakeholders and the general public to disregard the publication describing it as baseless.

     

     

  • Oil giant SHELL set to reduce workforce to save cost

    Oil giant SHELL set to reduce workforce to save cost

    British energy giant Shell plans to cut hundreds of jobs from its oil and gas exploration division as part of a cost-cutting program announced last year, a person familiar with the matter said Friday.

    The cuts will affect two units specialising in exploration and development of hydrocarbon extraction projects, with their workforces set to be reduced by 20 per cent, the source told AFP.

    Offices in the United States and the Netherlands will be most affected, the person added, but the details of the plan are subject to talks with unions.

    Shell announced in June 2023 that it intended to implement “structural operating cost reductions of $2 billion to $3 billion by the end of 2025”.

    Achieving those reductions will require “new efficiencies and a leaner overall organisation,” a Shell spokesperson told AFP, without confirming the job cuts.

    Shell earlier this month said net profit dropped eight per cent in the first half due to weaker gas prices and write-offs.

    Despite the fall in margins, the result was helped by lower operating costs and higher hydrocarbon production volumes.

    Shell, like its compatriot BP, has backtracked on some climate targets in recent months to the dismay of environmental campaigners, putting more emphasis on oil and gas to boost its profits.

  • 12 professors, 15 others inducted into Shell sabbatical, research positions

    12 professors, 15 others inducted into Shell sabbatical, research positions

    The Shell Petroleum Development Company of Nigeria Limited (SPDC) Joint Venture has significantly expanded its educational initiatives by inducting 27 Nigerian academics and research interns. This year’s programme, a 35% increase from the previous year, welcomed eight professors, four senior lecturers, and 15 other participants.

    Held at the company’s headquarters in Port Harcourt, the induction ceremony marked the beginning of a one-year programme focused on knowledge exchange and skill development. Drawn from 13 Nigerian universities, these participants will gain valuable industry experience in fields like biodiversity, petroleum engineering, and environmental impact assessment.

    “The research and internship programmes are central to our commitment to supporting higher education in Nigeria,” explained Shell Nigeria’s Head of Corporate Relations, and SPDC Director, Mr. Igo Weli. He described the programme as mutually beneficial nature by offering Shell access to specialised expertise from professors and lecturers, who in turn acquire practical industry knowledge and exposure to cutting-edge technologies.

    Despite operational challenges, Mr. Weli reaffirmed Shell’s position as the industry leader in fostering a positive learning environment and empowering people.

    Representing the NNPC Upstream Investment Management Services, Mrs. Bunmi Edith Lawson echoed Mr. Weli’s sentiments. She highlighted the programme’s significance in scientific exploration, environmental stewardship, and knowledge advancement. “This is an investment in the next generation of innovators,” she stated, “and a way for us to give back to our stakeholders.”

    The 2024 programme includes participants from a diverse range of universities across Nigeria, including the University of Benin, Rivers State University, University of Ibadan, Niger Delta University, and Ahmadu Bello University.

    Others are Bingham University Karu, Federal University Wukari, University of Medical Sciences, Ondo State, Covenant University, Alex Ekwueme Federal University Ndufu-Alike, Ajayi Crowther University, Oyo, University of Uyo, Ladoke Akintola University of Technology, and Michael Okpara University of Agriculture.

  • How Shell paid $1.09bn in taxes, royalties to FG in 2023

    How Shell paid $1.09bn in taxes, royalties to FG in 2023

    Shell says it exclusively paid $1.09 billion in corporate taxes and royalties to the Federal Government in 2023.

    Mrs Abimbola Essien-Nelson, the Media Relations Manager of Shell, made this known in a statement on Tuesday in Lagos.

    Essien-Nelson said that the royalties were paid through the operations of the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) and Shell Nigeria Exploration and Production Company of Nigeria Ltd. (SNEPCo).

    Essien-Nelson said that the figures, announced in the just published 2023 Shell briefing notes, showed that SPDC paid 442 million dollars, while SNEPCo remitted 649 million dollars.

    She said that similar payments made by the two companies in 2022 amounted to 1.36 billion dollars.

    “These payments are Shell exclusive and do not include those made by our partners.

    “Shell companies in Nigeria will continue to contribute to the country’s economic growth through the revenue we generate and the employment opportunities we create by supporting the development of local businesses,” Osagie Okunbor said.

    She said that Shell has invested in Nigeria for more than 60 years.

    Essien-Nelson said that the briefing notes report on the progress of the businesses of Shell companies in Nigeria – SPDC, SNEPCo, Shell Nigeria gas and Daystar Power for 2023.

    “The reports show that the companies continued to power progress, working closely with stakeholders and communities to promote socio-economic development and providing cost-effective and cleaner energy solutions.

    Okunbor added: “It is important to emphasise that Shell is not leaving Nigeria and will remain a major partner of the country’s energy sector through its deep-water and integrated gas businesses.

    “Our collective focus remains on delivery of safe operations and care for our people.

  • Why Shell is opting out of onshore assets in Nigeria

    Why Shell is opting out of onshore assets in Nigeria

    Shell PLC, United Kingdom, has reached an agreement to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC).

    According to a statement on the energy firm’s website, SPDC will be sold to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.

    The oil firm restated that it remains committed to investments in Niɠerian oil and gas sector.

    According to the statement, completion of the transaction is subject to approvals by the Federal Government and other conditions.

    Shell stated that the transaction had been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership.

    “This includes the technical expertise, management systems and processes that SPDC implements on behalf of all the companies in the SPDC Joint Venture (SPDC JV).

    “SPDC’s staff will continue to be employed by the company as it transitions to new ownership.

    “Following completion, Shell will retain a role in supporting the management of SPDC JV facilities that supply a major portion of the feed gas to Nigeria LNG (NLNG), to help Nigeria achieve maximum value from NLNG.

    “This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta.

    “The transaction is simplifying our portfolio and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions,” Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said.

    Shell UK described the deal as a significant moment for SPDC, whose people have built it into a high-quality business over many years.

    “Now, after decades as a pioneer in Nigeria’s energy sector, SPDC will move to its next chapter under the ownership of an experienced, ambitious Nigerian-led consortium.

    “Shell sees a bright future in Nigeria with a positive investment outlook for its energy sector. We will continue to support the country’s growing energy needs and export ambitions in areas aligned with our strategy,” the statement said.

    The SPDC JV is a joint venture comprising SPDC Ltd. (30%), the government owned Nigerian National Petroleum Corporation (55%), Total Exploration and Production Nigeria Ltd. (10%) and Nigeria Agip Oil Company Ltd (5%).

  • Shell to pay €15m to Ogoni farmers, Niger Delta communities over pollution

    Shell to pay €15m to Ogoni farmers, Niger Delta communities over pollution

    Shell Petroleum Development Company (SPDC), the Nigerian subsidiary of the global oil giant, Shell Plc, has agreed to pay €15 million to communities in the Niger Delta region of Nigeria, affected by multiple oil pipeline leaks.

    Four Ogoni farmers and fishermen sued Shell in the Netherlands in 2008 to pay for cleaning up spills in their villages: Goi, Oruma and Ikot Ada Udo. The communities were impacted by four oil spills that occurred between 2004 and 2007.

    The plaintiffs were aided by Milieudefensie, the Dutch branch of Friends of the Earth.

    A Dutch appeals court in a judgment given in 2021 after 13 years of legal battle, had ruled that Shell must pay for the series of leaks and that the parent company must install new pipeline equipment to prevent further devastating spills.

    In a statement released on Friday, December 23, the oil giants said they’ve reached a deal with the Dutch environmental group Milieudefensie that has helped the affected communities.
    Shell to pay €15m to Ogoni farmers, Niger Delta communities over pollution

    The statement read: “The settlement is on a no-admission-of-liability basis, and settles all claims and ends all pending litigation related to the spills.

    “Under the settlement, the Shell Petroleum Development Company of Nigeria Ltd (SPDC), as operator of the SPDC joint venture, will pay an amount of EUR 15 million for the benefit of the communities and the individual claimants.

    “An independent expert has confirmed that SPDC, as operator of the SPDC joint venture, has installed a leak detection system on the 20 lines that form the KCTL pipeline in compliance with the judgment of the court of appeal of The Hague, the Netherlands.”

    The statement added that the different parties agreed that remediation has been completed and certified by relevant regulations in accordance with Nigerian law.

    It added: “The parties agree this also follows from the judgments of the court of appeal.”

    Milieudefensie’s director Donald Pols said the settlement will allow the plaintiffs and their communities to finally get on with their lives. But he said it also has a wider significance.

    Pols said: “If we look at the court case as a whole, the major gain is that a new standard has been set: companies will no longer be able to get away with pollution and with ignoring human rights. Now they can be called to account.”