BY JAMES HERRON
LONDON -- A joint venture led by Shell said it will invest $3.9 billion on new oil and gas projects in Nigeria that will maintain the country's domestic energy supplies and export capability, while reducing the problem of oil theft from pipelines that has caused serious environmental pollution.
Shell said the investment demonstrates its long term commitment to its presence in Nigeria, although it also plans a strategic review of its operations in the country that could result in the sale of some onshore oil fields.
A $1.5 billion investment in a new pipeline, called the Trans Niger Pipeline Loop-line (TNPL), should help reduce oil pollution in the Niger Delta because it will be designed to be better protected from attempts to steal the oil carried within, Shell said.
A $2.4 billion investment in five gas projects, collectively called Gbaran Ubie Phase Two, will provide natural gas to run power stations in Nigeria and to feed the Nigeria LNG export project, Shell said.
Shell will also conduct a strategic review of their interests in Nigeria, which could result in its exit from some onshore oil and gas leases in the eastern part of the Niger Delta, the company said.
Shell was commenting on behalf of the Shell Petroleum Development Company, which is its joint venture with Nigeria National Petroleum Corporation, and the local units of Total and Italy's Eni.
Dow Jones Newswires