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Shell agrees to sell SPDC, announces plan to exit Nigeria

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Shell, a prominent international oil company, has agreed to sell its Nigerian onshore subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five Nigerian companies and an international energy group, for a sum of up to $2.4 billion. The announcement was made in a statement on Tuesday, signifying the conclusion of the British oil giant’s core operations in Nigeria, which began in 1979.

However, the completion of the transaction is contingent upon approvals from the Federal Government of Nigeria, holding a 55 percent stake, and other requisite conditions. Shell emphasized that the transaction aims to maintain SPDC’s operational capabilities, encompassing technical expertise, management systems, and processes that benefit all companies in the SPDC Joint Venture (SPDC JV).

The statement clarified that SPDC’s workforce will remain employed during the transition to new ownership. Furthermore, Shell will retain a role in supporting the management of SPDC JV facilities, crucial for supplying a significant portion of feed gas to Nigeria LNG and NLNG, contributing to Nigeria’s optimal value from NLNG.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented on the company’s future plans, stating a focus on investments in deepwater and integrated gas operations. Yujnovich emphasized the significance of the agreement in aligning with Shell’s previous intent to exit onshore oil production in the Niger Delta, streamlining the portfolio, and concentrating disciplined investment in Nigeria on deepwater and integrated gas sectors.

Yujnovich also expressed confidence in Nigeria’s energy sector, envisioning a positive investment outlook. Shell commits to supporting the country’s growing energy needs and export ambitions in line with its strategic goals.

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The SPDC JV is an unincorporated joint venture consisting of SPDC Ltd (30 percent), the government-owned Nigerian National Petroleum Corporation (55 percent), Total Exploration and Production Nigeria Ltd (10 percent), and Nigeria Agip Oil Company Ltd (5 percent), as reported by AtlanticReporters

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Tinubu orders MDAs to procure CNG vehicles

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President Bola Tinubu has mandated all government ministries, departments, and agencies to begin the procurement of compressed natural gas-powered vehicles.

A statement by Ajuri Ngelale, Special Adviser on Media and Publicity to the President, said the policy was in line with his commitment to ensure energy security, drive utility, and cut high fuel costs.

He said the directive is also in furtherance of Nigeria’s effort to transition to cleaner energy as CNG-enabled vehicles have been adjudged to produce lower emissions, even as they present a more affordable alternative for Nigerian energy consumers.

Addressing members of the Federal Executive Council, FEC, at the State House on Monday, President Tinubu affirmed that there is no turning back in the energy reforms initiated by his administration.

“This nation will not progress forward if we continue to dance on the same spot. We have the will to drive the implementation of CNG adoption across the country, and we must set the example as public officials in leading the way to that prosperous future that we are working to achieve for our people. It starts with us, and in seeing that we are serious, Nigerians will follow our lead,” the President stated.

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Tinubu further directed the rejection of all memos brought by members of FEC seeking the purchase of traditional petrol-dependent vehicles, tasking the affected members of the council to go back and diligently seek value-driven procurements of CNG-compliant vehicles.

“The President remains committed to effectively harnessing the nation’s gas potential, alleviating the burden of high transportation costs on the masses while enhancing the standard of living of all Nigerians,” the statement added.

CREDIT: DAILY POST

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Gov Fubara vows to probe Wike

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Rivers State Governor Siminalayi Fubara on Monday announced a plan by his administration to set up a panel to probe previous governments including the immediate past administration of Nyesom Wike.

Governor Fubara who has been in a face-off with Wike, the Minister of the Federal Capital Territory, FCT, disclosed the plan after swearing in Dagogo Iboroma as the Attorney General of the state.

The governor expressed pessimism that the lingering political crisis currently rocking the state cannot be resolved anytime soon.

Apparently referring to Wike, the governor accused his opponents of deliberately sabotaging his administration while he was hopeful that the issue in the state would be resolved amicably.

Governor Fubara vowed to make tough decisions moving forward no matter how they would be perceived by the public.

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Fubara also responded to recent comments by former Attorney General Zacchaeus Adangor, SAN, and his counterpart in the Ministry of Works Alabo George-Kelly.

According to the governor, the former attorney general alongside other critics of his administration have been sabotaging the progress of his government by filing nolle prosequi against the interest of the state.

CREDIT: DAILY POST

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Electricity tariff hike: Nigerian workers shut AEDC offices

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The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have closed all Abuja Electricity Distribution Company (AEDC) offices to protest against the increase in electricity tariffs.

According to information gathered by DAILY POST, the NLC prevented AEDC staff from entering their offices when they attempted to resume work on Monday.

An AEDC staff member, speaking anonymously, revealed, “The Apo office of AEDC has been shut down by NLC. When I arrived at the office around 7:00 am on Monday, I was instructed to return home. Similar instructions were given to colleagues in our other offices across Abuja.”

In a previous announcement jointly made by NLC Acting Secretary-General Chris Uyot and TUC Acting Secretary-General Ankan Hassan, Nigerian workers had pledged to close down the offices of the 11 Distribution Companies (Discos) nationwide and the Nigerian Electricity Regulatory Commission (NERC).

The workers demanded a reversal of the April 3 electricity tariff increase for band A customers, which raised the rate to N225 per kilowatt-hour from N68 per kWh. Despite this call, NERC proceeded with a slight tariff reduction to N206 per kWh, which was deemed inadequate by the organized labour.

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As a result, the NLC and TUC vowed to shut down the Discos and NERC offices until their demands were met. This development occurs amidst the challenges faced by Nigerians due to high headline and food inflation rates, standing at 33.20% and 40.01%, respectively, as of March 2024.

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