Shell reviews onshore gas projects
THERE are indications that the Shell Petroleum Development Company (SPDC) has begun the processes of reviewing some large gas projects onshore Nigeria.
This move, according to the Vice President, Nigeria and Gabon, Shell Upstream International, Markus Droll, was aimed at increasing its contribution to the nation’s Liquefied Natural Gas (LNG) output.
Already, the company has commenced negotiations with the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Liquefied Natural Gas (NLNG) on the terms of operations.
It was gathered that the contractual terms includes majorly the funding mechanism which has recently put many oil operators on their toes due to the sliding oil prices.
Droll, in a paper titled: “The Journey Towards Transformation”, said the company is committed to boosting Nigeria’s domestic gas as well as export capacities.
“Onshore, we are reviewing a number of large gas projects. If funding solutions are agreed upon, and when completed, these projects are expected to keep NLNG supplied with gas and to contribute to Nigeria maintaining its strategic position in the global LNG market.
“We are still looking into how we can further expand the NLNG supply and processing capacity working together with NNPC, our senior partner and the other NLNG shareholders. Many of you may know this, but i must mention that NLNG is a world-class operation, recognised as such well beyond Nigeria’s borders. This is something we should all be very proud of,” he said.
The Shell boss however added that the company is committed to making the Assa North/Ohaji South project a reality.
“This would be one of the largest domestic gas projects in Nigeria,” he noted, adding that the company is keen to see the project through to completion without fear of abandonment as a result of insufficient funds.
Shell had carried out series of divestment exercise in Nigeria particularly on the onshore assets which are handed to indigenous firms. The latest was the handing over of its equity in Oil Mining Lease (OML 29) to an independent operator, Aiteo Group last month.
The Shell’s vice-president said Nigeria remains an important part of the company’s portfolio where it expected to continue to have a significant onshore presence in oil and gas.
He stressed: “Nigeria has clear growth potential, including in deep water and onshore gas.