You might have noticed that the Stears Business newsroom has been keeping an eye on the rate of foreign investment leaving the country.
The latest on our radar is the first company to extract oil from Nigeria—Royal Dutch Shell Plc.
Since its first successful well drill in 1956, the company has remained a dominant player, accounting for 40% of condensate production in Nigeria’s strategically important sector. Condensate is different to regular crude oil because it is 'lighter'. It contains more petrol and diesel than bitumen and wax, which means the products’ price increases after refining.
Yet, half a century later, the Anglo-Dutch company plans to reduce its oil production in Nigeria by 80%. This is coming after a gradual sale of its assets, the latest of which is a total divestment from its Nigeria Joint Venture (JV) portfolio.
Before getting deep into what this means, it's essential to understand the