- Shell Nigeria Considering Investment in Gas Project
Shell is considering whether to invest in a gas project in the Niger Delta, the managing director of the local unit said on Tuesday.
Nigeria has the world’s ninth largest proven gas reserves at 187 trillion cubic feet.
The Managing Director, Shell Petroleum Development Company of Nigeria Limited, Mr. Osagie Okunbor, said the oil major was “on the verge of making a final investment decision” on a project in the city of Asa that would have a capacity of 300 million cubic feet.
He declined to specify the sum of money being considered as a possible investment, according to Reuters.
Okunbor stated that Shell was putting more emphasis on gas and reducing the oil portion of its footprint in Nigeria, although he added that the company was “still a significant player in onshore (oil)”.
Meanwhile, global crude oil price, Brent crude, fell to a new seven-month low on Tuesday amid growing concerns that the output cuts led by the Organisation of Petroleum Exporting Countries are failing to ease a global supply glut.
In May, OPEC, Russia and other producers extended the six-month production cut deal reached in December by nine months.
OPEC supplies jumped in May as output recovered in Libya and Nigeria, two countries exempted from the production reduction agreement.
Brent, against which half of the world’s oil is priced, fell to $45.96 per barrel as of 8:00pm on Tuesday, while the US West Texas Intermediate dropped to $43.47 per barrel.
Reuters reported that about five million barrels were left from Nigeria’s June programme and about 19 million from the July schedule, little changed in the past few days.
Maintenance at the Bonga oilfield will run from June 18 to June 30, traders said, after it was brought forward from July.
