Shell Retreats From Nigerian Oil Business:Firm To Focus On Gas After Battles With Pipeline Vandals

Shell is retreating from its key oil business in Nigeria amid long-running battles with thieves and racketeers. The blue chip giant lost around 5,660 barrels of oil per day last year – and far more in previous years – as criminals hacked into its vast network of pipes and sold the oil on local and international black markets.
Oil leaks caused by sabotage, as well as through its own operational problems such as cracked pipes and equipment breakdowns, have devastated local livelihoods and wildlife, triggering conflict and resentment.
Shell entered Nigeria in 1936 and the country's oil has helped the Anglo-Dutch firm become the £170billion mega-business it is today.


But bosses are now focusing on Nigeria's vast gas reserves instead, seeing it as a cleaner, more efficient resource.
The move could help finally reverse Nigeria's damning paradox of being awash with resources while at the same time struggling to supply power its 182m residents' homes.
Shell has sold around 13 of its 33 oil wells in the country to Nigerian companies since 2010, with more sales possible.
Over the past few years, Nigeria's small independent oil producers have spent billions buying assets from the big international players.