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Reuters: UPDATE 1-Shell to reduce costs in Nigeria restructuring

Tue Nov 13, 2007 5:12 PM GMT
(Adds quote, details)

LAGOS, Nov 13 (Reuters) – Royal Dutch Shell will reorganise its Nigerian units to cut costs after militant attacks on its oil facilities in the Niger Delta reduced output, the company said in a statement on Tuesday.

The company operates three different businesses in Africa’s top oil producer and the restructuring will involve sharing previously separate functions including production, development and projects.

“We are operating in an extremely difficult environment where levels of production have been severely curtailed by the security situation for some time, where there is significant upward pressure on costs and where funding issues are having an impact on our operations,” said Basil Omiyi, chairman of Shell’s Nigerian businesses.

“Under these circumstances we must take action in order to reduce costs, increase efficiencies and maintain a robust upstream business in the interests of both Shell, our partners and Nigeria in general.”

Shell is operator of a joint venture with state oil company Nigerian National Petroleum Corp, Total and Agip . (Reporting by Tom Ashby; Editing by David Holmes) 

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© Reuters 2007. All rights reserved.
 

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