Connect with us

Metro

Indigenous firm buys off Shell’s Warri airport

Published

on

As part of a general divestment plan, Shell Petroleum Development Company of Nigeria (SPDC) has sold the multibillion naira Warri airport to an indigenous energy firm, Shoreline Energy International Limited.

It was gathered that Shoreline Energy International took full possession of the facility in April, after the deal was signed and sealed at Shell’s office in Marina, Lagos on March 4.

Shell, which has been reviewing its operations in the Niger Delta area, had also recently sold some of its oil blocks and interests in the area, and the sale of the airport was said to be part of the strategic review.

The Lagos signing was witnessed by the Managing Director of Shell, Mr. Osagie Okunbor, and the Group Managing Director, Shoreline, Mr. Kola Karim.

A spokesperson for Shell, Mr. Bamidele Odugbesan, who confirmed the development on Tuesday, said the development was part of the strategic review of Shell’s business portfolio in certain areas of the Niger Delta.

“This does not mean we are reducing our investments in Nigeria. What we have invested in Nigeria in recent years has exceeded the divestment of our interests in the eastern Niger Delta. It is just part of the review of our business portfolio,” Odugbesan explained.

On the amount the airport was sold for, he said Shell would not be able to disclose some confidential financial details of the transaction.

The development means that commercial airlines, both scheduled and non-scheduled carriers, operating into and out of the airport, will now start paying fees to the new owner.

Shoreline could not be reached for comments as of press time.

Prior to construction of the airport, a small airstrip at Osubi had been created next to a congested part of the city of Warri in the 1960s.

The runway of the airstrip was approximately 0.7 kilometres in length. There was a small terminal building and an aircraft hangar. Small charter aircraft of Aero Contractors and other firms provided services to the airstrip from Lagos

The Federal Government had drawn plan to build an airport there in the late 1970s to allow easy movement into Warri by air because of its status as an oil city, but the plan could not be realised for over two decades.

Shell built the airport, which was opened for commercial use on April 1, 1999.

Ripples… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now