Shell says PIB threatens its investment in Nigeria

Category: Business Published on Wednesday, 16 January 2013 06:00

Shell Corporation says the uncertainty surrounding the Petroleum Industry Bill (PIB) currently before the ational Assembly will affect its future investment in Nigeria.

Chief Executive Officer of the multinational oil company Peter Voser said this in a report quoted in the company’s website.

“The current draft – which is still the subject of discussions and consultations – would make it highly unlikely that Shell – and the whole industry – could invest in offshore and domestic gas projects. This would be counterproductive to what Nigeria needs, which is gas for power generation and revenues to develop the nation,” he said.

Voser said one of the Shell companies in Nigeria, Shell Petroleum Development Company of Nigeria Ltd (SPDC) has made great progress over the last two years in terms of actually dealing with operational issues and in cleaning up previous years’ sabotage and operational spill sites.

He however regretted that unimpressive situation in the country last year increased incidences of stealing and sabotage of crude oil.

He said: “At the same time, the overall security situation in 2012 has worsened.

The stealing and sabotage of crude oil has intensified. It is a multi-billion-dollar business. Shell alone cannot solve these issues.

“It needs to be a multi-stakeholder approach, as we have been saying for many, many years. SPDC is prepared to do their share, but it needs more than just Shell’s support in Nigeria, it needs concerted government action to reduce theft of crude.”