It would take more than militant attacks to force International Oil Companies (IOCs) out of Nigeria as they have reiterated their resolve to remain in the country.
To protect themselves from further losses, some IOCs have planned to increase production shut-ins especially in areas that are most affected by terrorist attack, the Punch reports.
Speaking on the continuous attacks by Niger Delta militants, a senior official at a major oil company said that his firm is yet to consider leaving Nigeria even though it has decreased operation in affected areas.
“We are not thinking of pulling out of Nigeria for I’ve never heard it and I don’t have an answer to say that we are pulling out from the country. However, this does not mean that we won’t shut operations in areas where explosions and destruction are high.”
On his part, the Managing Director, Shell Petroleum Development Company of Nigeria Limited and Country Chair, Shell Companies in Nigeria, Osagie Okunbor, said, “Shell is not leaving Nigeria. Our strategy in Nigeria is to optimise our onshore oil footprint, while making further investments in other growth areas, particularly in deep water and the gas value chain, including domestic gas.”
The Managing Director of Frontier Oil Limited, gave possible solutions to the problem while noting that investment in oil has become risky.
“People only want to invest in an area where they can make money and enjoy their returns. This is a simple business strategy. There’s no point trying to make money if you are going to die in the next minute. It doesn’t make sense.”
“Now, the solution to this trouble has to be a carrot and stick approach. There must be engagement, because to some extent there is a political arm to this menace. But is it criminality and that is why we must adopt a carrot and stick approach. Let the people know that I’m willing to engage but this engagement will be with legitimate people who can put the interest of their people on the table.”