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Block CI-27 is slated to see gas yields rise to Bjørn Dale, DNO’s managing director, said
as much as 230 mcf (mcm) per day within the the acquisition was in line with the company’s
short term. Foxtrot announced in 2020 that it efforts to expand its geographical range. “As
was launching a two-year, $350mn development DNO targets expansion beyond the Kurdistan
and construction campaign that would allow it region of Iraq and the North Sea, the move into
to boost production and also start sending gas to Côte d’Ivoire is an important first step into a
another two TPPs. It has already been able to use highly prospective region, offering a broad set
cash flow from operations to fund most of the of growth opportunities through acquisition of
work under this campaign, drilling three new producing fields, development assets and explo-
wells and two side-track wells. ration licenses,” he said.
“[The] last well in the programme, a side- The company is looking into other invest-
track, is currently progressing,” the statement ment opportunities in West Africa, he added,
reported. without elaborating. ™

Shell says it won’t exit SPDC until

Nigerian court rules on oil spill case

NIGERIA IGO Weli, head of corporate relations at the
Nigerian arm of Shell (UK), reiterated on August
18 that his company would not proceed with the
divestment of a 30% stake in the Shell Petroleum
Development Corp. (SPDC) joint venture prior
to the resolution of pending litigation.
Speaking to This Day, Weli stressed that
Shell was legally bound by the decisions of
Nigeria’s Supreme Court, which has effectively
suspended the proposed asset sale until Octo- Shell spokesman Igo Weli (Photo: Shell Nigeria)
ber. “We respect the Nigerian judiciary and rec-
ognise its role in upholding the rule of law,” he Shell, which has been active in Nigeria since
declared. “Hence, as a firm believer in the rule the 1930s, began discussions with officials in
of law and due process, our actions will always Abuja on the sale of its holdings in SPDC last
be guided by the law.” year. The company has said it expects the 30%
The Supreme Court had issued an order holding to fetch $2bn-$3bn, but sources with
on June 16 saying that the status quo – that is, knowledge of the matter told Bloomberg in June
SPDC’s existing ownership structure – would that the valuation might be impacted by expec-
remain in place until it decided whether to tations of future costs related to environmental
uphold or overturn a lower court’s decision on penalties and litigation.
the spill. The lower court had ruled that the joint Selling the SPDC stake would allow Shell to
venture was obligated to pay the community shed most of its onshore portfolio in Nigeria.
NGN800bn ($1.9bn) in compensation for spills The company has said it wants to unload these
at its facilities in Rivers state in February 2018 assets as part of a wider effort to optimise its
and September 2019. portfolio and reduce carbon dioxide emissions.
According to Weli, Shell intends to make a Ben van Beurden, the super-major’s CEO,
strong argument for its own case at the upcom- has linked this interest in decarbonisation and
ing Supreme Court hearing, which is set for the energy transition with Shell’s ongoing strug-
October 4. “We have a strong belief in the merits gle to contain sabotage, oil spills and theft at its
of our case, which we are vigorously defending,” onshore pipelines and installations in southern
he was quoted as saying by This Day. We have Nigeria. In May 2022, he noted that the com-
no further comments at this stage other than to pany had been experiencing increasing diffi-
say that SPDC is complying with the Supreme culties in recent years and indicated that it was
Court’s order to maintain the status quo.” approaching a turning point. “In the end, we
He also dismissed rumours that Shell was have to concede that this is beyond what we can
looking to exit Nigeria entirely, saying that the do,” he remarked.
multi-national company was committed to its Equity in the SPDC joint venture is currently
deepwater and gas projects in the West African split between Nigerian National Petroleum Co.
country. Shell is keen to consolidate and expand Ltd (NNPC Ltd), with 55%; Shell, with 30%;
its position in Nigeria under a competitive and France’s TotalEnergies, with 10%; and Italy’s Eni,
stable investment climate, he said. with 5%. ™

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