The Long Journey of Shell in Nigeria: From the Beginning to the Future
Shell, the renowned energy corporation, has taken a momentous step by consenting to the sale of its Nigerian onshore oil and gas assets for an impressive $2.4 billion. This strategic action signifies a significant deviation from onshore oil production for the company. The consortium set to acquire these assets is spearheaded by the Nigerian independent energy firm, Renaissance Oil, and comprises other esteemed members such as ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. The sale represents a substantial transformation in Nigeria’s oil industry landscape.
To understand Shell’s journey in Nigeria and its evolution over the years, it is imperative to reflect on its beginnings. In 1936, Shell D’Arcy made its inaugural entrance into Nigeria, marking the commencement of an era spanning nearly nine decades. Despite its establishment in 1936, Shell did not initiate operations until two years later, when it obtained an exploration license to survey for oil across Nigeria.
The milestones in Shell’s chronicle in Nigeria are both plentiful and momentous. From its first well drilled in Oloibiri in 1956 to the establishment of the Shell Petroleum Development Company of Nigeria (SPDC) in 1979, the company has played a pivotal role in the country’s oil industry. SPDC has also been at the vanguard of technological advancements, such as pioneering the first made-in-Nigeria carbon steel pipes in 2012.
In recent years, SPDC has made remarkable contributions to Nigeria’s energy sector. The company has directed its efforts towards augmenting domestic gas distribution and successfully concluded the ultimate phase of its domestic gas pipeline expansion project in Abia State in 2020. Additionally, Shell has been actively engaged in Corporate Social Responsibility (CSR) initiatives and garnered the accolade of the best company in innovative CSR at the Social Enterprise Report and Awards (The SERAs) in 2011.
Looking ahead, Shell continues to make substantial progress in Nigeria’s energy industry. In 2022, the company acquired Daystar Power Group, a firm offering solar power solutions to commercial and industrial enterprises, underscoring Shell’s commitment to sustainable and renewable energy solutions. Moreover, Shell finalized the handover of the lease and operatorship of Oil Mining Lease 11 (OML 11) in 2022, signifying the company’s ongoing evolution in the Nigerian energy sector.
In August 2021, Shell announced the appointment of Elohor Aiboni as the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCo), its Nigeria deep-water business. This move underscored Shell’s dedication to the cultivation and nurturing of local talent and leadership within the company.
It is evident that Shell’s impact in Nigeria has been enduring and has left an indelible impression on the country’s energy landscape. As the company progresses and diversifies its investments, it is poised to continue shaping the future of energy in Nigeria and beyond. The sale of its onshore oil and gas assets is a strategic decision that will unquestionably have a lasting impact on the Nigerian energy industry.
