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Shell in Nigeria

Given the high political risk in Nigeria, why doesn't Shell go somewhere?

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Question: Given the high political risk in Nigeria, why doesn't Shell go somewhere?

Note: The source should be cited.

I have also included extra references for more detailed information for you in gathering data for your analysis. Remember to use this as a guide to help you formulate your own response. Hope I can help you again in the future OTA #105280

Nigeria Delta is the 9th largest source of natural gas in the world and has estimated oil reserve of 22.5 billion barrels (Friends of the Earth, April 2003). Shell began investing at Nigeria in 1937, and is the largest oil operation in Nigeria, producing half of the 2.5 million barrels Nigeria's exports daily (Foxcroft, 2004). Over USD12 billion in oil is pumped out every year, and most of it goes to the U.S (Damu and Bacon, 1996). Shell operations in Nigeria are significant and accounts for about 10% of the company's petroleum output (Christian Aid, Friends of the Earth, Platform and Stakeholder Democracy Network, June 2004).

Nigeria offers unlimited supply of crude oil unlike other oil producing countries, such as Saudi Arabia and other OPEC members, who impose a limit to daily supply of crude oil in the market. The unlimited supplies in Nigeria auger well for Shell's future global supplies and reserves of petroleum and enables Shell to maintain consistent returns on investment in Nigeria.

With oil representing 90% of Nigeria's export earnings and Shell being a major oil player ...

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Given the high political risk in Nigeria, why doesn't Shell go somewhere?

$2.19