Shell Nigeria divestment: Staff retrenchment underway

Hector Igbikiowubo

21 October 2014, Sweetcrude, Lagos – Shell Nigeria, subsidiary of the Anglo/Dutch oil company last week commenced a retrenchment exercise which insiders described as massive, but could not provide details regarding the number of those affected.

Shell facilityIn June 2013, the company announced a strategic review of its operations in the Eastern Niger Delta, pointing out that it could result in the divestment of some of its interests.

“A process of staff engagement for those potentially impacted in the event of a successful divestment has begun and will continue over the coming months,” Mr. Precious Okolobo, spokesman of Shell Nigeria explained in response to SweetcrudeReports enquiry.

Mr. Okolobo said that the company actively manages its portfolio across the globe to ensure the ‘strategic fit of assets and to maximize their value for our shareholders, government and communities where we operate’.

On the current scope of Shell Nigeria’s divestment programme, Mr. Okolobo explained that the assets under consideration are OMLs 18, 24, 25, 29 and the Nembe Creek Trunk Line, adding that the process has not yet been completed.

“We have signed Sales and Purchase Agreement for some of the Oil Mining leases but not all that we are seeking to divest. In the event of a successful completion of the sales process we shall make a market announcement.

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