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South African appeal court throws lifeline to Shell’s Wild Coast exploration

South African appeal court throws lifeline to Shell’s Wild Coast exploration

A South African appeals court suspended a previous ruling that halted offshore exploration by Shell (SHEL.L), along the unspoilt Wild Coast and allowed oil companies another chance at public consultation, court documents showed. The lack of public consultation was among the key reasons why a lower court ruled against Shell and other oil companies Impact Africa and BG International. In a keenly watched decision, the Supreme Court of Appeal (SCA) provided a lifeline to oil companies exploring along South Africa's coast, where a series of court actions have delayed exploration and dampened investor appetite. Exploration interest in South Africa sandwiched between petroleum hotspots Namibia…
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Shell to exit South Africa’s downstream businesses

Shell to exit South Africa’s downstream businesses

OIL major Shell (SHEL.L) will divest its majority shareholding from a local South African downstream unit after a comprehensive review of its businesses across all regions, it said on Monday. "As a result of this review, Shell has decided to reshape the downstream portfolio and intends to divest our shareholding in SDSA ... this decision was not taken lightly," a Shell statement said. It did not specify when the decision took effect. Shell Downstream SA (SDSA) was formed after Shell South Africa and black empowerment company, Thebe Investment Corporation, agreed a decade ago to merge Shell South Africa Marketing and Shell South…
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Oil majors offered faster Nigerian exit if they pay for cleanup

Oil majors offered faster Nigerian exit if they pay for cleanup

MAJOR oil companies such as Exxon Mobil and Shell that aim to exit Nigeria's onshore oil can get quicker approval to do so if they take responsibility for spills rather than wait for authorities to apportion blame, the regulator said on Friday. Exxon, Shell, TotalEnergies and Eni have all sought to leave Nigeria's oil-rich Niger Delta in recent years citing security concerns, including theft and sabotage, to focus on deepwater drilling. However, their exits have been delayed by regulatory hurdles. At a meeting with the companies in Abuja, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe offered a short-term option with faster approval if…
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Nigeria strikes deal with Shell to supply $3.8 bln methanol project

Nigeria strikes deal with Shell to supply $3.8 bln methanol project

NIGERIA has struck a deal for Shell to supply gas to its proposed $3.8 billion Brass methanol facility, resolving a major hurdle to a final investment decision on the project, the minister of state for gas said. Nigeria, which holds Africa's largest natural gas reserves of more than 200 trillion cubic feet, has struggled to tap the commodity due to capital constraints and a lack of infrastructure. Minister Ekperikpe Ekpo said in a statement that the Gas Supply and Purchase Agreement (GSPA), crucial for the Brass methanol project, will be executed next month following successful talks with Shell's Nigeria CEO and…
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OPEC woos Namibia as African nation prepares to produce from 2030

OPEC woos Namibia as African nation prepares to produce from 2030

THE OPEC+ oil producers group, having lost Angola and other players in recent years, is eyeing Namibia for possible membership as it sets up what could be Africa’s fourth-largest output by the next decade, an African industry official and sources told Reuters. TotalEnergies and Shell in recent years have made discoveries estimated at 2.6 billion barrels, setting the stage for the southern African country to plan production from about 2030. The initial focus for OPEC+ would be to see Namibia join its Charter of Cooperation, the sources said, a grouping that engages in longer-term dialogue about energy markets. Brazil joined the charter…
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Shell faces calls to safely decommission old assets before Nigeria exit

Shell faces calls to safely decommission old assets before Nigeria exit

NIGERIA needs to ensure that Shell safely dismantles its old infrastructure or pays to remove them from the Niger Delta before its exit, says a report on the environmental impact of the activities of multinational companies. Shell is set to exit from Nigeria's onshore oil and gas operations after agreeing in January to sell the business to a consortium of five mostly local companies for $2.4 billion. The deal is the latest by an international oil company seeking to divest from Nigeria's troubled onshore oil sector. But the cost of dismantling old assets could leave the country with environmental degradation, according to…
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Nigeria seeks to resolve disputed oilfield issues, denies criminal liability

Nigeria seeks to resolve disputed oilfield issues, denies criminal liability

NIGERIA wants to resolve outstanding issues around the disputed OPL 245 oil block as it seeks to attract investment to its oil and gas industry and has held talks with Shell and Eni to discuss the matter, its oil minister said. Minister of State for Petroleum Heineken Lokpobiri Minister of State for Petroleum Heineken Lokpobiri reiterated the government's position that there was no criminal liability on its part, or by the other parties, in the oil block deal, which has been embroiled in litigation for years. Nigeria in November, withdrew a $1.1 billion civil claim against Shell and Eni related to allegations…
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Nigeria set to approve Shell’s oil asset sale

Nigeria set to approve Shell’s oil asset sale

NIGERIA backs Shell's decision to sell its onshore oil and gas assets, its junior oil minister said, and will give the necessary regulatory approval. Shell announced its exit from Nigeria's onshore and shallow water operations after agreeing to sell the business to a consortium of five mostly local companies, opting to focus future investments in the less troubled deep offshore fields. Heineken Lokpobiri, Nigeria's minister of state for petroleum, who spoke at the World Economic Forum in Davos, said the government will not impede legitimate business transactions and reaffirmed its commitment to "fostering a business-friendly environment" in the sector. In a statement,…
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Shell to exit Nigeria’s troubled onshore oil after nearly a century

Shell to exit Nigeria’s troubled onshore oil after nearly a century

SHELL is set to conclude nearly a century of operations in Nigerian onshore oil and gas after agreeing to sell its subsidiary there to a consortium of five mostly local companies for up to $2.4 billion. The British energy giant pioneered Nigeria's oil and gas business beginning in the 1930s. It has struggled for years with hundreds of onshore oil spills as a result of theft, sabotage and operational issues that led to costly repairs and high-profile lawsuits. Since 2021, Shell has sought to sell its Nigerian oil and gas business but will remain active in Nigeria's more lucrative and less problematic…
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Nigeria’s top court says Shell’s appeal should be heard after oil spill claim

Nigeria’s top court says Shell’s appeal should be heard after oil spill claim

NIGERIA'S Supreme Court ruled that Shell should be granted a hearing over an alleged oil spill in the Niger Delta after the Court of Appeal halted an asset sale and ordered a judgement claim to be paid prior to hearing its case. The case, one of several against Shell Plc locally and abroad, started with a High Court ruling in November 2020 that ordered Shell to pay 800 billion naira ($878 million) to communities of Egbalor Ebubu in Rivers state, who accused the firm of an oil spill that damaged waterways and farms. Shell denies causing the spill. Shell had appealed…
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