Royal Dutch Shell has disclosed its intention to withdraw from Nigeria’s onshore oil sector, saying it in talks with the Nigerian government to work out how to exit its onshore licenses.
The CEO, Van Beurden, who made this known at Shell’s annual general meeting on Tuesday, explained that Niger Delta oil is no longer suitable for its business, adding that the incessant cases of oil theft and sabotage and spillage don’t fit with the organisation’s risk appetite.
“The balance of risks and rewards associated with our onshore portfolio is no longer compatible with our strategic ambitions,” Mr Beurden said. “We cannot solve community problems in the Niger Delta.”
He further disclosed that Shell proposed disengagement from Nigeria’s onshore sector will not affect its offshore operations, adding that the organisation is still very much interested in exploring the country’s deepwater and natural gas.
Shell has been finger for decades of environmental degradation and pollution of the Niger Delta environment.
Locals have constantly instituted lawsuits against the company over oil spills.
