Shell will sell its stakes in onshore oil fields in Nigeria to local businessmen. The reason for the sale is the inability to control the situation on the ground, Bloomberg reported.
A joint venture with Nigeria’s ND Western Ltd. was developing oil in the Niger Delta and coastal shallow waters.
In 2021, Shell decided to get rid of its stake in the venture on the grounds that the company’s new concept of operations with the transition to new sources of energy excludes a concession with Nigeria, where there is constant theft and regular oil spills.
The sale was halted by a Nigerian court a year ago, but now the issue has been revisited and Shell is awaiting a favorable decision.
The company has confirmed that it is moving away from onshore oil development due to its inability to control the situation on the ground, while maintaining its oil production in deepwater offshore Nigeria.