20 March 2016, Lagos – Royal Dutch Shell Plc has said the passage of the Petroleum Industry Bill, which seeks to overhaul the Nigerian oil and gas industry, could take a huge toll on its current and future operations in the country.
The oil major stated this in its annual report for the year ended December 31, 2015, which was released on Thursday and obtained by our correspondent.
The PIB, which has been in the works since 2008 when it was first introduced to the National Assembly, suffered setbacks in the 6th and 7th National Assembly. It is expected to be re-packaged and submitted to the current legislature.
Shell said, “In our Nigerian operations, we faced various risks and adverse conditions, which could have a material adverse effects on our operational performance, earnings, cash flows and financial condition.
“These risks and conditions include: security issues surrounding the safety of our people, host communities and operations; sabotage and theft; our ability to enforce existing contractual rights; litigation; and limited infrastructure”.