Shell to give $4 Billion to Two Projects in Nigeria

Shell has said that it will invest around $4 billion with its joint venture partners in two oil and gas projects in Nigeria.

This comes as the Federal Government said it would end the renewal of expired oil leases for Shell, Chevron and Total by August.

Chief Financial Officer Shell, Mr. Simon Henry said that the partners would develop the Forcados-Yokri project and the Southern Swamp associated gas gathering project.

Henry said that the projects “are very strategic” for Nigeria.

Forcados-Yokri and Southern Swamp associated gas gathering projects will pump 100,000 barrels and 85,000 barrels of oil equivalent per day at peak, respectively.

Henry said that the Southern Swamp will “collect gas, reduce flaring, while there is associated oil production and it will produce gas for domestic use for power.”

In a related development, the Federal Government will in the next three weeks conclude the renewal of oil leases for Shell, Chevron and Total.

Director of the Department of Petroleum Resources (DPR), Mr. Osten Olorunsola, said: “If you recall, ExxonMobil was signed off in March. We are still working on Shell, Chevron and Total, which should be over, hopefully, in the next three weeks.”

The DPR boss disclosed that out of the 388 acreages in the country, 173 had been allocated to 85 companies that are involved in the upstream business, while 215 were yet to be allocated to investors.

Shell is also working on 17 gas projects worth $6billion in the country and recently announced plans to invest about $3.5 billion in a natural-gas project in Imo State in the South-east.

It is still looking for buyers for its two oil and gas exploration licences in the African nation.