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Shell plans $1.6 billion lifeline for Nigerian gas flare out
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THE Shell Petroleum Development Company (SPDC) has announced plans to spend $1.6 billion on new investments to meet its 2009 terminal date for gas flare outs in the country. The federal government, through the Department of Petroleum Resources, had recently threatened to shut the oil installation of any oil companies in the country that renege on the 2008 terminal date for gas flaring in Nigeria.
But Shell, in its annual report has explained to the Government that its previous plan to terminate gas flaring in 2008 was hinged on sufficient funding of the joint venture progr-ammes to push the requisite gas gathering projects. |
According to the report, reduction in funding in the years past and dismal performance of contractors on some projects have caused delay in the completion of the company's gas gathering projects hence the need to extend the flare out date to 2009.
The report also said that within the last few years,the Anglo Dutch company has spent over $2.3 billion to develop major associated gas gathering projects to scavenge gas from its fields, spread over the Niger Delta, and to supply NLNG and the Power Holding Company of Nigeria for power generation.
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