Shell, Nigerian Government to Boost Production
Royal Dutch Shell has made the move to increase production in Nigeria, according to local reports. Shell is currently involved in a JV with the Nigerian government, a venture that has been hindered by financial difficulties.
The attempt to boost production comes on the heels of a new plan offered by Nigeria's government to the oil giant that would alleviate the funding issues that have impeded further development of the venture.
According to The Financial Times, Nigerian President Umaru Yar'Adua proposed outlines that would raise financing independently rather than depend on cash financing from the Nigerian government. Shell has accepted Yar-Adua's proposal.
The Times report indicated that Shell is prepared to back Nigeria's portion of the financing with a loan until the deal can be finalized.
With a 60-year history in Nigeria, Shell averages 1 million bbl/d of oil production in Nigeria's land, swamp, and shallow offshore fields.
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