Royal Dutch Shell disclosed that it has contacted the Nigerian Government about divesting its onshore holding through its onshore joint venture SPDC, citing increased oil spills it has experienced in the Niger Delta region through pipeline sabotage and other issues related to onshore operations.
This was disclosed by CEO, Ben van Beurden on Tuesday, at the Company’s annual meeting, reported by Reuters.
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What shell is saying
“We cannot solve community problems in the Niger Delta, that’s for the Nigerian Government perhaps to solve. We can do our best, but at some point in time, we also have to conclude that this is an exposure that doesn’t fit with our risk appetite anymore.”
The CEO added that Shell is in talks with the FG on the way forward as the company has drawn its own conclusion.
READ: Shell warns investors it may write down up to $22 billion due to oil crash
What you should know
Nairametrics reported in December 2020 that officials of Royal Dutch Shell’s Nigerian subsidiary were accused of allegedly masterminding the damage to oil pipelines so as to benefit from the money spent on repairs and clean-up operations.
