Shell’s Global CEO, Ben van Buerden, has disclosed plans to divest its onshore holdings through its onshore joint venture Shell Petroleum Development Company in Nigeria.
Concerns such as oil spills, operational issues and pipeline sabotage were some of the issues raised as reasons for the resolve. The spills have led to high profile lawsuits and costly repairs for the organization.
The CEO was quoted as saying the following below during the company’s annual general meeting and further stressed that Shell can no longer be subject to risks of theft and sabotage.
“We cannot solve community problems in the Niger Delta, that’s for the Nigerian Government perhaps to solve. We can do our best, but at some point in time, we also have to conclude that this is an exposure that doesn’t fit with our risk appetite anymore”
Ben van Buerden
The Nigerian Petroleum Minister, Timipre Sylva has disclosed that indeed, the government is in talks with Shell on how to divest its stakes and local and foreign companies are all viable options.
[…] is not the only company to share the same sentiments as Shell recently announced plans to sell its investments due to increased pipeline sabotage by the locals […]
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