Monday, January 18, 2010

Shell to sell off estate in Delta state, Nigeria

Shell Petroleum Development Company (SPDC) may have decided to sell its multi-million naira sprawling residential estate located in Edjeba, Warri, Delta State.

The company attributed the plan sale to sell off the estate to paucity of fund as it can no longer afford the high cost of its maintenance.

Occupants of the estate have also given quit notice to vacate the building to enable the company estate management carry out valuation of the properties.

A resident of the estate, who feel very concern about the decision of the SPDC management to sell the estate, said, it will not be easy to vacate such a secured area and get exposed to rancourous and insecure environment in the metropolis.

It would be recalled that SPDC had in recent time been making move to halt its operations and investments in Nigeria.

Shell Chief Executive, Peter Voser was recently quoted as saying in the company website, "The company has lost confidence in its Nigeria operations and no longer depends on the country in oil and gas output."

Shell, which has maintained its leadership position in the oil and gas sector in Nigeria since 1958 has recently made move to sell 10 of its Nigerian on-shore oil assets worth between $4 billion and $5 billion.

It was gathered that China National Petroleum Corporation has been reported as a possible buyer of the assets, as the company have shown enough interest to enter the Nigeria oil exploration industry.

The decision by Shell to move out of Nigeria may not be unconnected with high rate of militancy, kidnapping, violence and sabotage of its oil facilities in the Niger Delta region.

Shell production output went down from 300,000bpd to 120,000bpd in the height of violence crisis in the region; this greatly affected the company revenue.

Despite the amnesty granted militants by President Umaru Musa Yar'Adua in 2009, four expatriate workers with SPDC were kidnapped last week in Port-Harcourt by unknown gun men.

Daily Champion

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