Militants should be treated as criminals – Shell

Shell Petroleum Development Company, SPDC, Nigeria, has made its stand known concerning militants operating and vandalising its pipelines in the Niger Delta, saying the group should be treated as criminals.The company’s view was aired by its Managing Director and Country Chair, Osagie Okunbor during a chat with Business Times over the weekend.

While describing the havoc already wreaked by militants on the company’s pipelines and his perception about the group, Okunbor said the federal government does not need to dialogue with the militants, describing them as “criminals who should be dealt with”.

“Militants should be singled out as criminals and should be dealt with as criminals. The government needs not dialogue with them because they are determined to wreck this country. The FG should take necessary steps against these people if they want to sustain the oil business in Nigeria. Of course, we don’t totally rule out dialogue here but not with militants. The government can dialogue with the peaceful people of the region,” he said.

Meanwhile, the industry was thrown into pandemonium last week by report from Shell’s global CEO, Ben Van Beurden, that the company would be selling off its onshore assets in the North Sea.

On Monday, June 13, Beurden, laid out the company’s strategic plan for the rest of the decade, telling shareholders the group plans to vacate between five and fifteen “mature oil regions”.

Shell said it is preparing to retreat from high-cost oil operations in the North Sea after 45 years as it attunes its global operations to the new reality of low oil prices.The company has already cut hundreds of jobs from its UK workforce. It is the clearest sign yet that Britain’s biggest company could turn its back on the “super mature” North Sea. Shell told investors it’s planned $30bn sales drive was to tackle its debt burden and will focus on mature assets in established oil regions.

According to analysts, Shell’s international assets likely to be put on the block include Shell’s interests in its loss-making Canadian tar sands, and onshore oil assets in Nigeria.

Reacting to the news of whether or not there was any truth in analysts claim that Shell companies in Nigeria would be among those affected by the Beurden revelation, Okubor said he was sure Shell is not exiting the country.

“Our presence in Nigeria is substantial. Yes, we have problems with the militants and low oil price yet, we have other companies offshore, we have the deep waters, shallow waters. Despite our challenges, we still produce. So, I’m pretty sure exiting Nigeria is not on the cards for Shell,” he said.

Speaking on Shell’s contribution to developing human capital in the country, Okunbor said it spent some $0.9 billion on local contracting and procurement.

“Ownership of key assets such as rigs, helicopters and marine vessels was a key focus of these efforts to support Nigerian and community contractors,” he added.