Mr. Osagie Okunbor, the Managing Director of Shell Petroleum Development Company and Chair of Shell Companies in Nigeria, reaffirmed on Tuesday that the company is not leaving Nigeria, despite its plans to divest from onshore assets. Speaking during a high-level panel session at the ongoing Nigeria Economic Summit, themed “Fuelling Growth: The Future of Oil and Gas,” Okunbor emphasized that Shell is shifting its focus to the deepwater sector, where it holds significant technological and financial advantages.
Okunbor highlighted that Shell is increasing its investment in Nigeria, with single deep offshore projects costing up to $5 billion. “Shell is not leaving Nigeria. We are not going anywhere, and we will be together for a long time. Our onshore asset shares are being divested to a consortium of four companies that went through a rigorous selection process,” he stated.
He addressed concerns about the industry’s outlook, asserting that Nigeria’s petroleum sector is not in decline. “Let us not leave here with the thought that our industry is in decline; it is not. Since the enactment of the Petroleum Industry Act (PIA) and its supporting regulations, we are actually in a much better place,” he explained. Okunbor also mentioned that recent presidential directives are providing the coherence needed in the industry that had been lacking for a long time.
Call for Economic Growth and Diversification
In the same panel session, Mr. Philip Mshelbila, Managing Director of Nigeria Liquefied Natural Gas Limited (NLNG), stressed the importance of growing and diversifying Nigeria’s economy. He pointed out that Nigerians must lead efforts to achieve economic growth and diversification.
Mshelbila remarked on the crucial role of the oil and gas industry in this growth. “We have huge potential, and it is important that we diversify,” he said. He highlighted that the approach to diversification should not be about replacing one sector with another but rather ensuring that both sectors can grow simultaneously. He noted the historical shift from an agriculture-based economy to one dominated by oil and gas in the 50s and 60s, advocating for a future where both sectors thrive together.
The discussions at the summit reflect ongoing efforts to address challenges in Nigeria’s oil and gas sector while fostering economic development and sustainability.