Warning: include(): Filename cannot be empty in /home/content/00/11669200/html/naijatowncrier/wp-content/themes/rehub/header.php on line 92

Warning: include(): Failed opening '' for inclusion (include_path='.:/usr/local/php5_6/lib/php') in /home/content/00/11669200/html/naijatowncrier/wp-content/themes/rehub/header.php on line 92

Shell to sell licences, pipelines in Nigeria

Published on November 4, 2013 by   ·   No Comments

Profit after tax fell by a third to $4.677 billion in the three months to September 30 compared with the equivalent period in 2012, it said.

Shell’s Trans-Niger Pipeline (TNP) in the restive southern Ogoniland region has been repeatedly vandalised in recent months, leading to a reduction in the company’s daily output.

“We will divest the licences and operating responsibility for the pipelines, there is more than one, if we see a potential deal,” he added.

Thieves are known to tap pipelines to siphon crude for sale on the lucrative black market, while such illegal activity can lead to explosions, fires and oil pollution.

Anglo-Dutch oil giant Shell said on Monday that it intended to sell some assets in Nigeria after announcing a slump in global profits blamed on oil theft and sabotage.

Industry sources say Shell appears willing to shift more of its focus offshore, where the threat of sabotage and theft is far lower.

No further details were disclosed about the sale but Henry added: “There is a lot of interest from Nigerian indigenous companies.

Last month, Shell announced a drop of 35 percent in its third quarter net profits because of lower refining margins and disruption to production in Nigeria.

Nigeria is Africa’s largest producer, accounting for more than two million barrels per day.

Crude oil theft and pipeline vandalism are major problems in Nigeria, with estimates that it costs the country some $6 billion (4.4 billion euros) in revenue per year.

Shell, Nigeria’s largest operator, has blamed repeated oil thefts and sabotage of key pipelines as the major cause of spills and pollution in the oil-producing Niger Delta region in the southeast of the country.

“Some licences are up for sale, this includes some pipelines. We have not confirmed the specific licences,” Simon Henry, Shell’s chief financial officer told AFP in an emailed statement.

print(Post From PM News)

We will be happy to hear your thoughts

Leave a reply

*