Shell: Restructuring’ll Affect Nigerians, Expatriates
By Chika Amanze-Nwachuku, 01.25.2008
Royal Dutch Shell Yesterday gave an insight into the current reorganisation of its Nigerian companies, saying the exercise was meant to maintain a robust upstream business in the country and will affect both its Nigerian and expatriate staff.
The oil major had late last year announced the planned restructuring of its Nigerian business to the effect that all the company’s affiliates will come under ‘one Shell’.
In line with the restructuring exercise, Shell Group had also last year disclosed that it plans to sell $900 million worth of interests in Nigerian offshore blocks to reduce its business in the troubled Niger Delta region.
The development which is believed to be the first of its kind since the company commenced exploration activities in Nigeria has elicited reactions from both stakeholders and industry watchers as many view it as a ‘ploy’ to lay off most its Nigerian staff.
The company, others believe, plans to cut costs and jobs at its Nigerian ventures, sequel to the persistent crisis in the oil-rich region which has adversely affected its production capacity and coupled with federal government’s plan to renegotiate contracts.
Throwing more light on the issue yesterday, a Shell spokesman, Precious Okolobo told THISDAY that the reorganization affects both the company’s Nigerian and expatriate staff.
Insisting that the exercise was not targeted to Nigerians, Okolobo explained that apart from that the ‘One Shell’ structure will strengthen the company’s Nigerian operation, it will pave the way for its continued interest and that of its numerous partners.He stated that posts of Nigerian working in the company at the top levels will not downgraded as currently speculated, explaining that job titles and positions are being re-aligned with the rest of the Shell Group, adding that the development do not reflect a decrease in importance or accountabilities. On the fate of Shell’s Country Chairman cum Managing Director of the Shell Petroleum Development Company of Nigeria (SPDC), Mr. Basil Omiyi, Okolobo who parried the question simply said he will bring his wealth of experience to bear on the new structure.“The reorganization affects both Nigerian and expatriate staff. It is not true that Nigerians are being targeted. We remain committed to Nigerianisation at all levels and to staff from our oil producing states. We believe that the reorganisation will help maintain a robust upstream business in the country (including the Niger Delta) and pave the way for continued improvement in the interests of Shell, our Partners and Nigeria in general.“Posts are not being downgraded in that sense of the word. Job titles and positions are being re-aligned with the rest of the Shell Group but they do not reflect a decrease in importance or accountabilities. Basil Omiyi became full-time Country Chair of Shell Companies in Nigeria with effect from 1st January 2008, based in Abuja. The appointment of a fulltime Chairman for Shell Companies in Nigeria reflects the importance of Shell Nigeria to the Shell Group, and the growing importance of our interfaces with the executive, legislative and judicial arms of government. Mr. Omiyi has had a long and distinguished career with Shell, heading up different areas of the business including External Affairs, Environment and Production, and we are pleased he will bring this wealth of experience to bear on our interfaces” he posited.Shell has till date kept mom on the said bid to sell its $900 million, about 49.8 percent of interests owned through subsidiary Shell Nigeria Exploration and Production Co. Ltd.But reacting to the planned sale in a report Bloomberg last year, Paolo Scaroni, Chief Executive of Apip, a unit of Eni SPA, holders of the remaining 50.2 percent, said the persisted Niger Delta crisis was not enough reason why oil majors should leave the country."The situation in Nigeria certainly isn't peaceful, but I don't think it is such as to push oil majors to leave," Scaroni had said in the wake of the reported plans by the royal Dutch company to sell off interest in the Nigerian oil blocks.The two stakes, each of 49.8 percent - and owned through Shell Nigeria Exploration and Production Co. Ltd. - are in deep water blocks OML-125 and OML-134, the latter formerly known as OPL-211. Agip, a unit of Eni, owns the remaining 50.2percent in each block. OML-125 produced 12,000 barrels a day of oil net to Eni in 2006. During 2006, Agip made a new discovery of both oil and gas in a well located in the block. OML-134 is still in exploration phase.
