VenturesNow

Shell to leave Nigeria’s troubled onshore oil space

Published

11 months ago

January 16, 2024

Energy multinational, Shell, is concluding plans to end operations in Nigeria’s onshore oil and gas space after agreeing to sell its subsidiary there to a consortium of five mostly local companies for up to $2.4 billion.

Shell has been trying to sell its Nigerian oil and gas company since 2021; with this development, however, it will still be involved in the country’s more profitable and trouble-free offshore market.

The British major would sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) for a consideration of $1.3 billion, it said in a statement, while the buyers would make an additional payment of up to $1.1 billion pertaining to earlier receivables at completion.

The buyer, the Renaissance consortium, is made up of Petrolin, a trade and investment firm with headquarters in Switzerland, and the local oil exploration and production firms, ND Western, Aradel Energy, First E&P, and Waltersmith.

Shell, which has been the target of numerous lawsuits seeking damages for harm resulting from spills in the Niger Delta over the years, announced that Renaissance would assume responsibility for handling spills, theft, and sabotage.

Shell’s departure from Nigeria is part of a larger retreat by Western energy giants, which are concentrating on other, more lucrative ventures. Eni of Italy and Equinor (EQNR.OL) of Norway have recently reached agreements to sell assets in the nation.

Shell head of upstream, Zoë Yujnovich, said, “This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio, and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions.”

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”