By Clara Nwachukwu
Anglo-Dutch Shell local unit in Nigeria has said it will continue to invest in oil and gas exploration and production, despite the challenges in the operating environment.

The Chairman of Shell Companies in Nigeria, Mr Mutiu Sunmonu, speaking recently in Abuja, however said such investments will be spurred by “the right conditions”.

According to Sunmonu, who is also the Managing Director of the Shell Petroleum Development Company of Nigeria, SPDC, “Shell will continue, under the right conditions, to invest in projects that would benefit the people. We are not doing this because we lack investment options. We are doing it because we believe in a strong and healthy nation.”

The Shell boss, who spoke at a lecture titled: “Investing in the Nigerian Oil and Gas Sector”, to mark Nigeria’s 50th independence anniversary, used the opportunity to explain the scope and philosophy behind investments made by SPDC and its Joint Venture, JV, partners. The partners include the Nigerian National Petroleum Corporation, NNPC; Total Exploration & Production, Total; and the Nigerian Agip Oil Company, Agip.

Despite skepticisms surrounding the Golden Jubilee Anniversary elebrations, Mr. Sunmonu argued that Nigeria “have reasons to celebrate,” as it holds nearly 10 percent of global proven oil reserves and about eight percent of global proven natural gas reserves. But for the country to continue to attract increased level of international investments, he said that “it needs to sustain confidence and stability and respect the sanctity of contracts.”

He stated that Shell, which is the oldest energy company in Nigeria, has developed a “long term and continuing commitment to the country, its people and the economy.” This, he said, have generated billions of dollars to help fund development and growth, adding that working with the NNPC and other international oil companies, Shell has also made big investments in the oil and gas industry.

Mr. Sunmonu cited some of these investments to include the Gbaran_Ubie Integrated Oil and Gas development and Afam VI Power Plant, which are expeted to boost development in the country.

In particular, the Afam plant commenced electricity generation in October 2008, fed with gas from Shell’s new Okoloma Gas Plant, while oil and gas production from Gbaran_Ubie began in July this year.
He said that in addition to these investments, Shell and its JV partners also support and finance community development initiatives in the Niger Delta.

In 2009 alone, Shell and its partners contributed $57.7 million directly to development projects – many delivered in partnership with others.