Energy Briefs
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THE Royal Dutch Shell has listed security issues surrounding the safety of its people, sabotage and theft as some of the major risks and challenges affecting its operations in Nigeria. In its recently released annual report for the year ended December 31, 2015, Shell said that the non-passage of the Petroleum Industry Bill, PIB, expected to overhaul the Nigerian oil and gas industry, could affect its current and future operations in the country.
“In our Nigerian operations, we faced various risks and adverse conditions, which could have material adverse effects on our operational performance, earnings, cash flows and financial condition. These risks and conditions include security issues surrounding the safety of our people, host communities and operations, sabotage and theft; our ability to enforce existing contractual rights; litigation; and limited infrastructure,” the report said.
Shell has been active in Nigeria since 1937. Its operations concentrated in the Niger Delta and adjoining shallow offshore areas where it operates in oil mining lease area of around 31,000 square kilometres. It has more than 6,000 kilometres of pipelines and flow-lines, 87 flow-stations, eight gas plants and more than 1,000 producing wells, employing over 4,500 people directly, of which 95 percent are Nigerians.
— Mar 28, 2016 @ 01:00 GMT
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