Shell Corporation has approved a fresh $4 billion (N636 billion) investment to pursue its crude oil exploration and production activities in Nigeria, the Managing Director of Shell Development Company of Nigeria Mutiu Sunmonu has said.
He last week while speaking on the investment opportunities in Nigeria in the era of Petroleum Industry Bill and National Content Development.
Sunmonu said the new investment approval covers new oil wells, gas, and expansion of its operation and development of local content in Nigeria.
Shell Corporation has approved a fresh $4 billion (N636 billion) investment to pursue its crude oil exploration and production activities in Nigeria, the Managing Director of Shell Development Company of Nigeria Mutiu Sunmonu has said.
He last week while speaking on the investment opportunities in Nigeria in the era of Petroleum Industry Bill and National Content Development.
Sunmonu said the new investment approval covers new oil wells, gas, and expansion of its operation and development of local content in Nigeria.
The new investment decision is coming on the heel of speculation that the multinational company is leaving Nigeria because of unfavorable policies and operational environment.
But Sunmonu said Shell has no time plan to exit Nigeria.
"We are not exiting Nigeria. My board has approved a fresh investment of $4 billion on our expansion activities in Nigeria. That shows that we are not going anywhere. We will remain in Nigeria for many years to come while we will continue to contribute our quota in reshaping the landscape of oil and gas in Nigeria," he said.
He said as part of efforts to expand the utilization of domestic gas and encourage indigenous participation in the nation's gas sector in the country, 30 indigenous gas supplier firms have submitted application for the distribution of gas from the SPDC, emphasing that the project is being pursue by the multinational oil company in partnership with the World Bank.
Sumonu also disclosed that in 2011 about $1.4 billion worth of contracts were awarded to Nigerian firms. This, he said, represents about 43 per cent of total contracts awarded that year and about 68 per cent of total amount spent in 2011.
He urged foreign investors to take advantage of huge gas reserves of over 186 trillion cubic feet, about four tanks in United States to invest in the sector as government has review the gas price for the sector to be more profitable for new investors.
He said with the government's plan to attract over $10 billion in petrochemical and fertilizer between now and 2014, foreign investors, he said should see the sector as a goldmine and invest in it as the local content policy is meant to protect the local industry and not indigenization of any foreign companies.
"Foreign companies should not interpret Nigeria content development as nationalization of assets of companies operating in Nigeria but what the law is doing is to actually protect the right of all investors while also grow the local skill," he said.
He said for the local content policy to be successful, there is need to build skills and capacity.
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