Shell Petroleum Case Study

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Analysis of Shell Petroleum Development Company of Nigeria
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Analysis of Shell Petroleum Development Company of Nigeria
Shell Petroleum Development Company of Nigeria (SPDC) is a multinational company based in Nigeria for the last 50 years dealing with petroleum products. Apart from offering exploitation and drilling of oil in Nigeria, shell has ventured in the power generation to serve the small and medium enterprises in Nigeria. The production of oil takes place in the Nile Delta region which stretches 30km2 where the company is working in 90 oil fields with a total of 1,000 oil wells. This paper provides a long term strategy that will ensure that the company will be able to expand and be able to withstand both social and political pressure …show more content…

However the company is dealing with the spills by closely monitoring the pipelines and conduct timely repairs in case of oil spillage. There is a need to employ technology to ensure that the oil spills are detected as fast as possible to ensure that the pipelines are repaired on time. The company should consider developing newer pipelines that will be covered by concrete to discourage oil theft.
Long Term strategies
After analyzing the situation, there is a need for the company to invest in the local industry. The best idea is to invest in power generation. The strategy is to involve the company in power generation by scaling up the existing electricity production. Availability of the cheap power will not only support the current local businesses, but will also attract international investors. Also, the huge population of the country will ensure that the power generated is gets ready market. Additionally, the company deals with refining of oil destined for the international company. The gas produced in the refining process can be used to generate electricity rather than just selling the

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