Royal Dutch Shell has its sights still trained on Nigeria, despite announcing plans to slash as much as 40 percent of its upstream oil and gas operations in a bid to redesign its business toward a greener portfolio.
Shell will reduce its upstream oil and gas expenditure to focus on just key assets in Nigeria, Gulf of Mexico and North Sea, according to Reuters’ sources.
“We are looking at a range of options and scenarios at this time, which are being carefully evaluated,” a spokeswoman for Shell told Reuters, confirming that the group is undergoing a strategic review of the organization and its operations.
BusinessDay reported in July that Shell warned in its second-quarter 2020 outlook that it could write down between $15 billion – $22 billion in post impairment charges in second quarter 2020, due to the heavy effect of the pandemic in their business. Shell had earlier this year shocked investors by cutting the dividend by 2 thirds for the first time since World War 2.
Shell pioneered Nigeria’s oil and gas industry and remains a major investor in Africa’s biggest oil producing country.
