Royal Dutch Shell Plc, operator of Shell Petroleum Development Company (SPDC) of Nigeria, Thursday said it would invest about $4 billion with its joint venture partners in two oil and gas projects in the country.
This is coming as the Federal Government said it would conclude the renewal of expired oil leases for Shell, Chevron and Total by next month.
SPDC operates as a joint venture of Royal Dutch Shell, Eni, Total and the Nigerian National Petroleum Corporation (NNPC).
Chief Financial Officer of Royal Dutch Shell Plc, Mr. Simon Henry, told reporters in London that the partners would develop the Forcados-Yokri project and the Southern Swamp associated gas gathering project.
Forcados-Yokri and Southern Swamp associated gas gathering projects will pump 100,000 barrels and 85,000 barrels of oil equivalent per day at peak, respectively.
Southern Swamp will “collect gas, reduce flaring, while there is associated oil production and it will produce gas for domestic use for power,” said Henry, adding that both projects “are very strategic” for Nigeria.
Henry said the company had already found investors for four licences in its effort to reduce its geographical spread across the country. The Forcados-Yokri fields are located in shallow waters in the western Niger Delta.
Shell had stated recently that it planned to invest about $3.5 billion in a natural-gas project in Imo State in the South-east.
The company is also working on 17 gas projects worth $6billion in the country. Shell is still looking for buyers for its two oil and gas exploration licences in the African nation.
In a related development, the Federal Government will in the next three weeks conclude the renewal of oil leases for Shell, Chevron and Total.
Briefing the chairman and members of the House of Representatives Committee on Petroleum (Upstream) yesterday in Lagos, the Director of the Department of Petroleum Resources (DPR), Mr. Osten Olorunsola, stated that the agency was working on the renewal of shallow water leases.
“If you recall, ExxonMobil was signed off in March. We are still working on Shell, Chevron and Total, which should be over, hopefully, in the next three weeks,” he said.
The DPR boss disclosed that out of the 388 acreages in the country, 173 had been allocated to 85 companies that are involved in the upstream business, while 215 were yet to be allocated to investors.
He noted that 70 per cent of the 315 oil fields in these 173 acreages are producing oil and gas, while about 30 per cent of the fields are still going through exploration and appraisal stages.