Shell to reduce costs, improve oil production in Nigeria

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Shell Petroleum Development Company of Nigeria Limited (SPDC) has reiterated plans to continue to reduce costs of operation and improve production availability in Nigeria.

Shell’s Vice President, Nigeria and Gabon, Peter Costello, who made this declaration in the latest issue of the company’s in-house journal, expressed confident that the company can address the challenges in its operating environment and continue to deliver real value to all stakeholders.

Costello stated: “I know a lot of work has gone into driving costs down and improving our production availability and this must continue. We must understand the essence of being competitive – we have to generate positive cash flow. No business can keep making a loss and still remain in business. If at the end of my time here, it can be said that we ran a safer, more competitive and better business than our competition, I will be a happy man,” he added.

He described Nigerians as resilient, saying, “I noticed how resilient and committed our people are in the face of extremely uncertain times. Just imagine this, our business here is run by Nigerians. Our three main companies, SPDC. Shell Nigeria Exploration and Production Company (SNEPCo) and Shell Nigeria Gas are headed by Nigerians.

“Then there is the Nigeria Liquefied Natural Gas (NLNG) where we have a 25 per cent stake and are Technical Advisors, a world-class operation being run by Nigerians. So my role here is basically to build on the excellent platform for increased value in the Shell presence in Nigeria.

Shell’s Vice President believed the present challenges in the Nigeria’s oil and gas industry are surmountable. “Since I came here last year, I have developed deep respect for our colleagues in the Niger Delta because they continue to demonstrate such dedication as they work to deliver our collective objectives in spite of the challenging conditions they have to operate in.

“Shortly after I arrived, we celebrated the Bonga team for making a U-turn in Bonga’s performance and winning the Upstream “Asset of the Year” award. The Erha (SNEPCo Non-Operated Venture) team also won the 2016 Global Development “Barrel Chasing Champion” award for initiating studies that enabled the Operator to turn around a large number of opportunities thereby increasing production and arresting a long-standing decline. Realising that I would be working with this calibre of people was very encouraging. To find such talent and passion in one group of people at the same time is rare.”

Speaking on the plans for 2017, Costello further stated: “The ‘Fit-for-the-Future’ programme we have embarked on, underpinned by the continued Winning Ways of Working culture change should move us towards sustainable cost competitiveness and operational excellence as we keep a keen focus on our cash delivery. It must be clear to all that ‘improving the business is the Business.”

“In 2017, I am committed to meeting as many people in and outside of Shell as I can. In December, I connected with the young leaders and Shell Women’s Network groups and hope to continue holding such employee engagements across the business throughout this year. I am keen on keeping the conversation going. I want to hear from staff so we can share ideas on how we can keep our business winning! Finally, as I have said over and over, working safely continues to be our number one priority. Success will not mean a thing if we lose any one to achieve it.”

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