The company has spent millions working with NGOs and community development organizations to strengthen education and health care, provide vocational training and establish protected nature reserves.
Share By Ron Bousso BODO, Nigeria Reuters - Royal Dutch Shell wants to reweight its footprint in Nigeria to focus on oil and gas fields far offshore, away from the theft, spills, corruption and unrest that have plagued the West African country's onshore industry for decades.
But for the company that pioneered Nigeria's oil industry in the s, the Niger Delta remains as important -- and problematic -- as ever. While Shell has cut onshore oil production and sold some onshore assets, it continues to invest in others.
In fact, onshore production has risen in recent years as a share of Shell's output in Nigeria, an analysis of company data over the past decade shows.
Much of the increase comes from less polluting gas, used mainly in power generation, which Shell thinks will be key to the transition to lower carbon energy.
Gas made up 70 percent of onshore production inup from 47 percent in The company still controls thousands of kilometres of pipelines connecting inland fields to coastal terminals through its subsidiary, Shell Petroleum Development Co of Nigeria SPDChowever.
So while SPDC has cut oil production in the Delta by 70 percent sincewhen it first started reporting data on spills, the incidence of spills and theft from pipelines has fallen at a much lower rate and has picked up again recently, the data shows. That is not what we are thinking of doing," he told reporters on a media trip to the country in July.
On a speedboat trip to the site of a clean-up operation launched by Shell last year, a makeshift oil refinery stood idle on a charred landing. The ground was soaked with oil, the air heavy with petrol fumes and slicks glistened in the water nearby. There were few signs of birds or fish.
So far this year, 85 crude spills have been recorded, already higher than the previous two years. Inmilitant attacks pushed the volume of spills to more than 30, barrels, a high since Despite all the problems and costs, however, Nigerian onshore operations generate billions of dollars annually.
A Shell spokesman declined to comment on the specifics of Reuters' data analysis. The Nigerian Petroleum Ministry declined to comment. Shell has shown it can shut down if it is not making money.
It stopped producing oil completely in Iraq last year after half a century in the country, although it retains substantial gas operations.
SPDC - operated by Shell with a 30 percent stake while the Nigerian National Petroleum Co has 55 percent, France's Total has 10 percent and Italy's Eni has 5 percent - is the country's largest oil joint venture, employing thousands. The government cracked down and in executed nine protest leaders, including prominent writer Ken Saro-Wiwa, prompting Shell to end production in the area forever.
Story Continues It retained control of the Trans-Niger Pipeline, however, and nearly a quarter of a century later, little seems to have changed on the ground.
In Shell accepted responsibility for operational faults that caused the spills that dumped tens of thousands of oil barrels into creeks around Bodo, and paid a settlement of 55 million pounds to villagers. Dozens of spills since, including one by a barge carrying stolen oil that sunk in July, are frustrating remediation efforts, clean-up officials said.
Around 80 percent of the spills are a result of sabotage, Shell data shows. Shell has taken a number of steps to improve the situation in the area, including training youth to start up businesses and funding local community patrols, campaigns to raise local awareness and even a local radio station.
But critics say it is not enough. Much of the anger is focused on Shell but Eni has also struggled to cope in recent years. Since starting to report data to authorities inthe Italian company has recorded more spills than Shell, according to Amnesty International.
I hope that you guys here can force Shell to do the right thing," Michael Porobunu, chairman of Gokana council of chiefs, told the clean-up crew and reporters on his porch.
It has applied to renew the remaining licences, which expire next year.
The divestments are a reminder of another cost of doing business in Nigeria - corruption.The Ogoni region is a highly oil-rich area in the Niger Delta area of Nigeria, populated by approximately , members of the Ogoni People.
Since the Shell Petroleum Development Company discovered oil in Ogoniland in , the region has been plagued with serious environmental degradation resulting from the over oil wells in the area.
During the toughest downturn in oil prices for decades, some energy projects had to find inventive ways to survive. One was Appomattox, a major deep-water development in the Gulf of Mexico.
Those involved believe it set a new standard for the development of major Shell projects in the future. Our scientists developed Shell Rimula heavy-duty diesel engine oils, designed to protect your engine, helping you lower maintenance. Industrial Lubricants and Oils for Business Browse our lubricants and find out which is best for your business through our expert advice, support, and case studies.
Shell began investing at Nigeria in , and is the largest oil operation in Nigeria, producing half of the million barrels Nigeria's exports daily (Foxcroft, ).
Over USD12 billion in oil is pumped out every year, and most of it goes to the U.S (Damu and Bacon, ). "The Shell Petroleum Development Company of Nigeria Limited has recovered over 95% of spilled oil from the recent spill incidents on sections of the Trans Ramos Pipeline (TRP) in Aghoro community, Bayelsa State, and in Odimodi community in Delta State," Shell said in a statement.
Shell Oil and the Exploitation of Nigeria Nigeria has been a country in political turmoil for a long time. The country was created in under British colonial rule and at that time it was considered a protectorate.