VENTURES AFRICA – Oil major Royal Dutch Shell has revealed plans by its Nigerian joint venture to inject $3.9 billion in the country’s oil-rich Niger Delta region.
It said this included an attempt to advance the protection of a pipeline that was closed down this week.
On Wednesday Royal Dutch Shell’s Nigerian unit shut down a pipeline in the Niger Delta after a blast and an inferno damaged it.
On Friday, the Royal Dutch Shell said the $3.9 billion capital injection was also aimed at maintaining Nigeria’s energy stocks and export competence, while also tackling the setback of oil stealing from pipelines.
The joint venture will splurge $1.5 billion on the new pipeline known as Trans-Niger Pipeline Loop-line which transmits about 150 000 barrels of crude a day. This pipeline is situated on the eastern part of the Niger Delta.
According to the Dow Jones Newswires, there will also be a $2.4 billion injection in five gas projects, known as Gbaran-Ubie Phase Two. This will deliver natural gas to electricity stations throughout Nigeria.
It said this investment showed its long-standing obligation to Nigeria while it was also planning a strategic review of its businesses in the country.
“Shell and its partners will also conduct a strategic review of their interests in Nigeria, which could result in their exit from some onshore oil and gas leases in the eastern part of the Niger Delta,” Dow Jones quoted the oil major as saying.
Culled from venturesafrica.com