Multinational oil company Shell is selling its onshore oil producing business, but not ending operations in Nigeria.
On 16 January 2024, Shell made the announcement that it was selling the Shell Petroleum Development Company (SPDC) of Nigeria Limited, one of its onshore Nigeria subsidiaries, to a group of domestic and foreign businesses.
The company also noted that the completion of the deal was subject to the approval of the Nigerian government.
Several news reports have also reported the intention of Shell to let go of its onshore oil production business in Nigeria. Onshore oil business refers to the extraction of crude oil that is land-based.
Former chief executive officer, Ben van Beurden, announced in 2021 that the company was in talks with the Nigerian government to sell its onshore production business to local companies. Van Beurden said pipeline theft, sabotage, and operational issues were some of the reasons given.
The company further explained that it had three other operations in Nigeria, namely Shell Nigeria Exploration and Production Company Limited, Shell Nigeria Gas Limited and Daystar Power Group. So the company is not leaving Nigeria, but only withdrawing one of its businesses.
False information about a major oil player leaving an oil-producing country could have significant economic implications. Fact-checking ensures that people have access to accurate information, preventing unnecessary panic among citizens.
