International oil giant, Shell, is planning to invest $4bn (about N628bn) in Nigerian onshore oil and gas projects between now and 2015, the company’s Chief Executive, Mr. Peter Voser, has said.
He said Shell was assessing onshore projects in Nigeria to add to current production and reduce gas flaring.
“These could cost a combined $4bn on a 100 per cent basis and would be completed by 2014 or 2015, subject to approvals and the security situation (in the country),” Voser added.
International oil giant, Shell, is planning to invest $4bn (about N628bn) in Nigerian onshore oil and gas projects between now and 2015, the company’s Chief Executive, Mr. Peter Voser, has said.
He said Shell was assessing onshore projects in Nigeria to add to current production and reduce gas flaring.
“These could cost a combined $4bn on a 100 per cent basis and would be completed by 2014 or 2015, subject to approvals and the security situation (in the country),” Voser added.
He further said, “Our strengthened financial position and re-focused portfolio now enable us to drive forward a new agenda for the medium term. We are planning to raise net capital investment to about $30bn in 2012, up from some $24bn in 2011. Maintaining a robust investment programme – even through the dips of business cycles – is the best way to create growth and shareholder returns.
“The actual spending level in any given year, of course, will depend on project timings, industry costs, asset sales and the flexibility to scale up or down our drilling programmes.”
The company is, however, worried about the security concerns associated with operating in the country with an estimated total of 150,000 barrels of oil and condensate stolen on a daily basis in the Niger Delta.
In a briefing to investors on Wednesday, which was published on Shell’s website, Voser said, “There are no easy answers to the security issue in Nigeria as production shut-ins actually abet oil thieves. The overall security situation in Nigeria has been improving, following the government’s amnesty (programme) in the Niger Delta in 2009.
“This has allowed the SPDC joint venture to ramp up production to some 800,000 barrels of oil equivalent per day in 2011 from around 460,000 boepd in 2009.”
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