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,
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