Shell Petroleum Development Company of Nigeria Limited, the Nigerian subsidiary of Royal Dutch Shell, may reduce its oil production by 750,000 barrels per day as it reviews its stake in 28 oil blocks in the country.
The company announced in a statement that it was embarking on a strategic review of its business, saying it would consult with its international and Nigerian partners over the future of the 28 leases that produce some 750,000 barrels a day of oil.
The company said in the statement, “Shell’s 100 per cent-owned subsidiary, SPDC, announced the initiation of a strategic review, consultation with partners, and the potential exit from the interests it holds in some further onshore leases in the eastern part of the Niger Delta, subject to partner and regulatory approvals.
“The SPDC JV produced around 750 kboe per day of oil and gas in 2012 from 28 Oil Mining Licences across the Niger Delta, both onshore and in the near offshore. SPDC has been following a strategy of selective divestments of its onshore portfolio, concentrating the operating footprint into a smaller, more contiguous area, while supporting the government’s policy of encouraging investment by indigenous companies in the Nigerian oil and gas industry.”
The company said it had since 2010 sold its interest in eight OMLs for a total of $1.8bn.
The Managing Director, SPDC, and Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu, said, “Nigeria remains an important part of Shell’s portfolio, with clear growth potential, particularly in deepwater and onshore gas.
This strategic review marks another step in re-focusing the SPDC portfolio.
International oil companies operating in the country have been engaged in selective divestment of their stakes. Earlier last week, United States-based Chevron Corporation said it would sell five Nigerian shallow-water oil blocks. Read more