25 June 2013, Lagos – Shell Petroleum Development Company of Nigeria Limited, SPDC, operator of the Nigerian National Petroleum Corporation, NNPC/SPDC joint venture, has disclosed that its planned $2.4 billion investment in the Gbaran-Ubie Phase Two project will ensure 100 per cent capacity utilisation of the plant.
The company also said that peak production from the plant, which consists of five gas supply and infrastructure projects which are critical for the continued gas supply to the Nigeria Liquefied Natural Gas, NLNG, plant and the Gbaran-Ubie domestic power plant (IPP) will be 215,000 barrels of oil equivalent per day.
A statement from the company also hinted that it will consider local companies for the planned divestments ffrom some of its interests Nigeria.
Shell had announced plans to invest about $3.9 billion in two projects in Nigeria – the Trans-Niger Pipeline loop-line, TNPL, and Phase Two of the Gbaran-Ubie gas project.
It also declared its intention to further cut down on its operations in Nigeria, stating that it is undertaking a strategic review of its businesses. It added that it would consult with its international and Nigerian partners over the future of its 28 Oil Mining Licenses, OMLs in Nigeria that produce about 750,000 barrels of oil a day.
Continuing, Shell disclosed that it has been following a strategy of selective divestments from its onshore portfolio by “concentrating the operating footprint into a smaller, more contiguous area, while supporting the Government’s policy of encouraging investment by indigenous companies in the Nigerian oil and gas industry.”
Commenting on the development, Mr. Mutiu Sunmonu, Managing Director, SPDC, said, “These announcements demonstrate our long term commitment to Nigeria by clearly signalling our intent for the strategic direction of Shell in Nigeria.