Indications have emerged that oil giant Shell is planning to quit Nigeria and 19 other African nations this year. Realignments are already in the offing following reports that the oil dealer is planning to quit 20 African countries.
Shell had made a brisk move of actualising its plans to quit Nigeria with the intended sale of its assets in the country valued at about $5 billion.
The Federal Government reacted swiftly that this was not possible for the oil and gas giant to sell its assets in Nigeria without necessary approvals.
Local dealers who have a business relationship with the firm, confirmed to Kenyan newspaper Daily Nation that Shell intends to sell its refinery, storage and retail businesses from nations where it still operates.
Shell communications manager East Africa, Ms Victoria Kaiga, confirmed that the firm is reviewing its global downstream business, according to the report posted online by the Royal Dutch Shell Plc.
"Like any competitive business, Shell actively manages its global portfolio and is always seeking opportunities to improve profitability. We continuously review our global downstream portfolio in line with our more upstream, profitable approach to capital allocation," said Ms Kaigai.
The firm recently disposed of businesses in Greece and expects to sell refineries in the United Kingdom and Germany.
Ms Kaigai denied reports that Shell is in talks with any third parties to sell downstream business in Africa.
On January 4, the French state-funded public broadcaster Radio France Internationale reported that Shell is expected to make a partial withdrawal from the African continent this year.
In 2008, Royal Dutch Shell, Europe's largest oil company, moved away from 15 African countries, although it holds on to its most lucrative activities: exploration and production.
Oilibya and Morocco Oil are said to be eying the firm's North Africa assets while in southern Africa, Engen Petroleum Ltd is said to be interested. If Shell goes ahead to pull out of Kenya, Total will remain the single largest global brand in the local retail petroleum business.
Shell had positioned itself in the market with earlier acquisitions of Agip and BP, but seems to be reeling from growing competition from local and Asian firms.
Over the recent years other global petroleum brands such as Esso, Agip, Mobil, BP, and Caltex (Chevron) have vanished, leaving only two global brands - Shell and Total - which combined control about 45 per cent of the Kenyan market.
Mobil was bought by OilLibya, owned by the government of Libya through Tamoil, while Caltex was recently taken over by Total.
The report comes as Shell officials have been insisting their BP investment is long term.
On December 20, Reuters had reported that Shell was selling oil fields in Nigeria valued at up to $5 billion.
In Nigeria Shell has been seriously embattled with several court cases and allegations of environmental malpractices, coupled with series of attack on its facilities by angry militants operating in the Niger Delta, the home of Nigeria's oil wealth.
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GOOD RIDDANCE!
After years of Independence where is Nigeria today? Don't hold the oil companies to taking care of the Niger Delta people; however, these companies pay their dues to the government of Nigeria so the latter is responsible for her people. Business isn't run this way!!! I don't understand why all Nigerians think that these companies should cater to the needs of the Nigerian people. Look at Dubai, I think that UAE sole source of revenue is oil. But boy, this place is well developed and all these oil giants operate there fine. No problems. Facts are Nigerians just think of their individual selves and just want a chance to own an oil block per family!!! The same act (money, rum, blankets, tea, etc.) that caused your ancestors to sell their own into slavery is still well and alive in you guys blood!!! Good riddance to Africa, instead. Jackasses!!!
Billnjoku, are you referring to Dubai that is living in fools' paradise on borrowed time until Abu Dhabi comes to their rescue if you are paying attention to the recent story about Dubai's difficulties to refinance a mere $8 Billion debt that may bring its house of cards down to its sandy foundation? Compared to Nigeria's $36 Billion debt that our former President paid off and still bequeath a $50 Billion savings to his currently comatose successor. Nigeria's future will be brighter once we get over the current political hump for other investors to come knocking once we get our house in order, other than this Shell of predatory exploiters. Mr. Njoku the joker, it is Nigerian Judas like you that would rather sell his people down the river of economic slavery for a mess of porridge that we fear. Otherwise, we are doing fine here, so stay with your shellgame.
Boy, you sound and appear illusional here. Even America or Brtain are in depth; every nation today is somewhat insolvent because of globalization...in business category, however. Dubai isn't like Nigeria where even borrowed money can't be used for its pretentious use for schools, road, etc; however, in Dubai (try and visit Dubai even a muslim state) there are good roads, school systems, etc. This is what I mean. I guess you don't get it. An average Nigerian, to me, is a selfish opportunist. Period!!! Give Nigeria all the world's money today still Nigeria wouldn't know what to do with it. I still remember when Gowon said that he was confused on how to use the early Nigeria's oil wealth!!! Nigeria is following a downward statecraft trajectory. You see young fellow? Nigerian leaders and perhaps even her ruled are illusional, sycophantical and don't know what to do. You folks play the "at-the-moment game, tribalism, etc." It is my turn, so let me grab it all so when I leave the company or government office, my clan folks will hail me a "hero" and the best seat given even in the Church or Mosque, respectively. Right? Be that as it may, you can tell how Nigeria really is by looking at her from the family (at home) model.....very dysfunctional. One good trait about Nigerians though (being very derisive here) is that they are good by the book...grammar use, good grades at schools, etc., literally, but in terms of applied skills learnt you folks lack. This is the beginning of a societal debacle; Nigeria is precipitously going down the drain of "mother earth," hypothetically, if I may conclude. Good riddance to Nigeria, by Shell, instead!!! A concerned black Cowboy from Dallas, Texas, U.S.A, from Imo State, Nigeria. Disclaimer: I am not taking the west sides, but just being a realist!!! I visit Nigeria each year. Hot air at the Murltala Airport on each arrival because someone stole the money meant for buying a/c units!
Billnjoku, I am proud to be illusional if you are delusional to think that our common country of origin is irredeemable. Perhaps history has taught you nothing, then allow me refresh your small brain with Ghana before Rawlings, Chile before Pinochet, Korea before the War or even tiny Uganda under Idi Amin. If you are sitting pretty enjoying your Dallas Cowboys on the Prairie, so am I a loyal Washington Redskins fan on the Potomac - even though we are currently on a losing streak after 3 Super-bowl victories in our recent past that does not mean the Skins cannot be champions again, even next season. Perhaps you are too dull to get my football metaphor here to relate to the old Nigerian adage that no condition is permanent, you bloody sell out.
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