Olufemi Adeyemi 

Shell Petroleum Development Company (SPDC) has reaffirmed its commitment to Nigeria, despite plans to divest its onshore assets.

The company, recognized for its substantial investments in the region, is currently allocating $5 billion to a single deep offshore project, underscoring its dedication to the Nigerian oil and gas sector.

During the 30th Nigerian Economic Summit (#NES30) in Abuja, Mr. Osagie Okunbor, Managing Director and Chair of Shell Companies in Nigeria, emphasized that Shell intends to maintain its presence in the country.

“Shell is not leaving Nigeria. We are not going anywhere, and we will be together for a long time,” Okunbor stated.

He clarified that while Shell is divesting its onshore assets to a consortium of four companies, the focus will remain on deepwater operations, where the company holds a competitive advantage in technology and finance.

Despite apprehensions regarding the future of Nigeria’s oil and gas sector, Okunbor expressed a positive outlook, asserting that the industry is not in decline. “With the implementation of the Petroleum Industry Act (PIA) and other supportive regulations, the industry is in a much better position,” he remarked, noting that recent presidential directives have provided essential clarity to the sector.

In a panel discussion, Mr. Philip Mshelbila, Managing Director of Nigeria Liquefied Natural Gas Limited (NLNG), highlighted the importance of economic diversification alongside the development of the oil and gas industry. “Nigeria must grow its economy, and oil and gas must play a part in that growth,” Mshelbila emphasized, indicating that diversification should enhance the oil sector rather than replace it.

However, Mshelbila pointed out that insecurity in the Niger Delta has impeded growth in the oil and gas sector, causing international companies to withdraw from onshore operations.

He disclosed that NLNG’s six trains are currently operating at only 62 percent capacity due to security issues and a slowdown in upstream investments.

Amina Maina, the Group Chief Operating Officer of MRS Holdings, provided reassurance regarding the current petrol shortage in Nigeria, indicating that relief is on the horizon. She announced that the Dangote Refinery has commenced petrol sales, with further supplies anticipated to be available in the market by the week's end. “I am aware that a lot more products have come into the system, and the queues should disappear in the coming days,” Maina said.