Shell Mulls $15bn Investment Surge in Nigeria

Oil giant, Royal Dutch Shell, is mulling additional $15 billion investment in Nigeria. The company, which is the biggest international oil company (IOC) in Nigeria in terms of assets and oil production volume, a document sighted by New Telegraph at the weekend showed, would put the investments on offshore acreages in the country as well as increase in funding for its Liquefied Natural Gas.

Shell, however, said that it did not rule out further divestment in the onshore fields where it held sway for decades.

Citing the Bonga South West Aparo project as part of the investment plan, Shell said it had met with President Muhammadu Buhari in London as part of talks for the country to secure the $15billion of investment. The Presidency had also confirmed this in a statement, stating that the President was excited by the talks of $15 billion investment.

“I saw Shell Group, they came here, they saw me, they are preparing to invest $15 billion in Nigeria… so, really, we are not doing too badly,” Buhari told CNBC.

He was speaking as part of a panel on the ease of doing business between Commonwealth countries. Shell confirmed to CNBC that the meeting had taken place, but did not comment on the size of the specific investment.

“Nigeria is an important country for Shell. We see good opportunities there for potential investment,” a spokesperson for Shell said in a statement, referencing its Bonga offshore oil field and the expansion of liquefied natural gas as examples of this.

“Both projects are subject to a future final investment decision and we continue to work with our partners and government towards that in each case,” added. The company added that it did not rule out divestment in an onshore field as part of funding model for the new investments.