Royal Dutch Shell Plc has said the
passage of the Petroleum Industry Bill, which seeks to overhaul the
Nigerian oil and gas industry, could take a huge toll on its current and
future operations in the country.
The oil major stated this in its annual
report for the year ended December 31, 2015, which was released on
Thursday and obtained by our correspondent.
The PIB, which has been in the works
since 2008 when it was first introduced to the National Assembly,
suffered setbacks in the 6th and 7th National Assembly. It is expected
to be re-packaged and submitted to the current legislature.
Shell said, “In our Nigerian operations,
we faced various risks and adverse conditions, which could have a
material adverse effects on our operational performance, earnings, cash
flows and financial condition.
“These risks and conditions include:
security issues surrounding the safety of our people, host communities
and operations; sabotage and theft; our ability to enforce existing
contractual rights; litigation; and limited infrastructure.”
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