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Shell often loses oil in Nigeria as a result of pipeline damage, sabotage and spills (Photo: UNEP)

He also indicated that Shell was not optimistic back its activities on this front for some time.
about its ability to settle all disagreements with Over the last decade, it noted, Shell has divested
residents of the Niger River Delta. around half of all the licences it held for onshore
The company “cannot solve community Nigerian assets.
problems” in the region and has begun discus- The company has experienced significant
sions with Nigerian federal authorities on its challenges in the Niger River Delta. It has been
next steps, he said. caught up in conflicts between host communi-
“When law and order [break] down, when ties and the federal government, with the former
sabotage and theft [are] rife where you try accusing it of working with the latter to deprive
to operate, no amount of effort that we put in residents of the areas near the oilfields of a fair
can actually try to compensate for that,” he share of revenues and to shirk responsibility
remarked. “At some point in time, we also have for environmental depredation. Meanwhile,
to conclude that this is an exposure that does its pipelines and infrastructure have repeatedly
not fit with our risk appetite anymore. We have been damaged by both thieves and protesters,
drawn that conclusion, and we are now talk- leading to losses and spills.
ing to the Nigerian government on the way Shell has also clashed with some of the local
forward.” companies that have acquired its assets over
Van Beurden did not say whether these the years. For example, the major is currently
discussions were part of a process that would involved in a lawsuit with Aiteo Eastern E&P, a
end with Shell’s exit from all Nigerian onshore Nigerian company that bought one of its pipe-
projects, and he did not reveal whether the lines, along with other assets, six years ago. Aiteo
company had set a deadline for making any claims that Shell misrepresented the condition
decisions. Bloomberg noted, though, that the of these assets, while Shell has described Aiteo’s
Anglo-Dutch major has been gradually scaling claims as unfounded. ™

Impact Oil & Gas completes farm-in

deal for Area 2 offshore South Africa

SOUTH AFRICA IMPACT Oil & Gas (UK) said it had completed reference 12/3/276).”
a farm-in deal that gave it a 90% equity stake in The acquisition, which will take effect as of
Area 2, an ultra-deepwater licence area located May 14, will reduce Silver Wave’s stake in the
off South Africa’s south-eastern coast. project to 10%, it added.
In a statement, Impact Oil & Gas said that Impact Africa will now lead exploration and
its wholly owned subsidiary Impact Africa had development efforts over a block that covers an
finalised its agreement with Silver Wave Energy. area of about 78,708 square km in waters up to
Assuming that authorities in Pretoria approve 4,500 metres deep. The most prospective parts of
this deal, it said, Impact Africa 90% will acquire the block, which spans sections of the Gamtoos,
“a 90% working interest [in] and operatorship of Algoa and Transkei basins, are in 3,500-metre-
Area 2, offshore South Africa (Exploration Right deep water.

P10 www. NEWSBASE .com Week 20 19•May•2021