Shell petroleum to invest US$3.9bn in oil sector in Nigeria
Shell Petroleum Development Company of Nigeria (SPDC), operator of the Nigerian National Petroleum Corporation (NNPC)/SPDC joint venture, has announced plans to invest US$3.9 billion in the oil sector.
A statement by its spokesman, Mr. Tony Okonedo, on Saturday, the company stated that it has taken final decision for the Trans Niger Pipeline Loop-line (TNPL) and the Gbaran-Ubie Phase Two projects.
“The total capital investment for the two bundles of projects is around US$3.9 billion,” it stated.
SPDC also announced a strategic review of the interests that it holds in selected onshore leases in its JV contracts.
“Today’s announcements demonstrate our long term commitment to Nigeria, by clearly signaling our intent for the strategic direction of Shell in Nigeria.”
The TNPL is important for Nigeria, pumping some 180,000 barrels per day of crude oil to the Bonny Export Terminal.
Also it is part of the gas liquids evacuation infrastructure, critical for continued domestic power generation (Afam VI power plant) and liquefied gas exports.
“Sections of the TNPL have before now been heavily impacted by sabotage and crude oil theft.
“But the new design of the TNPL includes improvements which make the pipeline better protected against crude oil theft and sabotage.
“This would help to reduce pollution related to criminal activities which was a key aspect of a 2011 United Nations Environment Programme (UNEP) report on Ogoniland.