Why We Can’t Build Refineries In Nigeria – Shell

Mr Malcolm Brinded, the outgoing Executive Director of Shell Petroleum Development Company (SPDC), says the company cannot build a refinery in Nigeria because there are surplus refineries across the world.

Brinded, who is in-charge of the Upstream International unit of the company, made the statement in an interview with the State House correspondents, after a farewell visit to President Goodluck Jonathan at the State House.

The out-going Shell chief in Nigeria, who led a delegation to the State House, Abuja, said rather than build new refineries, the company was divesting from those it had interest in around the world.

“With respect to downstream, two comments there. Shell is divesting from refineries all over the world because there is a surplus of refineries; we no longer own any refineries even in the United Kingdom.

“I will also say because of the surplus of refineries available in a way, one has to look very closely whether building new refineries is a good investment for anyone not just for Shell but for countries involved.

“In today’s world, not looking at the past but where we are today, there is surplus of refinery capacity which essentially means many refineries in the world run at a loss.

“Which also means one can get refined products back again and pay very little for it to be refined,’’ he said.

Brinded said that building refineries was no longer profitable and that informed the company’s decision to invest in the gas sector.

According to him, Shell would continue to invest in the development of the gas sector, adding: “I do believe that investment in the downstream sector, especially gas sector in Nigeria, as I touched on, is very important.

“Nigeria has huge resources of gas that have yet to be unlocked and the potential to add to that gas not only in power but in other ways in the country.

“I think there are a lot of opportunities for Nigeria and for Shell in Nigeria and the potential much more than to consider refining.’’

Source: Vanguard Newspapers


  1. “I think there are a lot of opportunities for Nigeria and for Shell in Nigeria and the potential much more than to consider refining.’’….what could that be???? a country that locals dont know what it seem like to have electricity for 24hours how much more of jobs what have shell done for the people especially those one their property were use in the name of getting this oil no good road noting why not show the people some love since the government has fail them in so many ways shell should do something different talk to those fake leaders about their selfish interest let them know that there alot of people going hunger every blessed day find a way to do or add it to ur plan and present it to the government make those locals happy for goodness sake.

  2. Business in nigeria is all about “padi padi” so Man what u are saying is not new.You are already saying what we expected from you.How can you tell me that if shell build refinery in the country they may run at loss,then if that is the case why fuel subsidy removal.

  3. Nigerians should not take the word out of that shell Director seriously. Remember the current Minister of Petroleum Resources, Mrs Dieazani Madueke , she is still a shell Director. She never talks sense. It is very easy to make Shell build Refinery and Generating plant in Nigeria. Ask them to stop producing/exporting crude from any field where they are not committed to refine 20% of the produced crude locally or use 100% of the flowstation gas currently flared for small scale/LGA based power generation.I have worked/associated with the Nigerian oil industry since 1975- 36yrs and understand the mentality of the oil managers. They never have local interest unless asked to leave. All mega/large scale projects are avenues for draining dollars out of Nigeria – NAFCON, ALSCON, GASPLANTS,STEEL PLANTS, DAMS, NEVER COMPLETED DUAL CARRIAGE ROADS etc. Nigerians are never good/known at managing large scale projects except in mismanaging/stealing the money. So Presido GEJ/GOVs/LGA chairmen should avoid large/medium scale projects/failures for next 5yrs. Let’s have small scale projects everywhere like 90 power generating stations in 90 flowstations in the country where gas is currently flared; 50 butimen plants around ORE to LAGOS tar sand deposits for producing coal tar for tarring roads;7740 water boreholes/10 in each LGA – do away with world bank/IMF Federal min of water resources based water works.What about 200 fish farming ponds in each LGA or sheep/goat/cattle breeding rural based settlements to occupy Southern and Northern MILITANTS/TERRORISTS all of them better known as Nigerian BOKO HARAMs for lack of better words.They are all bunch of umemployed/unemployable youths misguided by greedy criminal politicians/ex generals the likes of IBORI, ATIKU, IBB, DESILVA, TINUBU, BUHARI, BAKARE, ODILI, ORJI UZOR KALU, NZERIBE, and other billionaires CABALS.

  4. YOU MAKE MORE MONEY from exporting crude, refining it elsewhere, and re-importing it.
    BP and London have no good will for the African.
    It is all about money and what they can steal from the motherland.
    TELL OBAMA why you can’t build a refinery in his country and get kicked out asap.

  5. hmmm is only God we save us in this Nation.after all the promises that have made from the PRESIDEN AND HIS MEMBER now evrything have change.no more building of refineries again because the GOVERMENT have fulfilled their EVIL DESIRES by gathering the REMOVAL OF FUEL SUBSIDY and do what they like with. this is UNBELIEVABLE.it is a SHAMEFUL FOR SO CALLED HOUSE and LOWER HOUSE.think before U do is bether than D before U think. ONE I BELIEVE DAT IS VERY SURE*NOBODY COME WITH MONEY OR HOUSE TO EARTH and NOBODY WILL TAKE ANYTHING WHEN HE DIE.let us have the FEAR of GOD.and it shall be well with us…

  6. It’s only the people who are still under the illusion of so called ‘trust’ that cannot understand the type of govt Nigerian’s citizens normally witnessed. People were clamouring, give Goodluck Jonathan chance. Look at it now. A performing president don’t need even one whole month to start his good works. A performing president will never requested for the punishment of the poor masses who are at the verge of death out of hunger, to do the right thing. This present administration is the weakest and most insensitive govt in the entire history of Nigeria and world at large. Look at what a man who called himself a director of shell is saying? Which country among the oil-producing country in the whole world do not have refineries? All these satanic candidates shuld stop punishing the innocent and godly people in this country. Enough is enough. If Mr. IBB, Mr. Obasanjo and Orji Uzor Kalu are not brought to book 4 their evil menace against economic development of this country, then, the confused and figure-head who calls himself the president shuld stop fooling himself that he wants to fight against corruption.