Multinational oil giant, the Royal Dutch Shell, may relocate to other countries such as Iraq to counter lost oil production in Nigeria, after raising its investment spending targets for the year.
The United Kingdom�s Daily Telegraph newspaper reports that Shell�s chief executive, Jeroen van der Veer, said the multinational company would spend up to $36 million (?18 billion) on drilling and acquisitions this year. His comments came as he unveiled a 33 percent rise in second-quarter net profits to $11.6bn (?5.8bn), boosted by record crude prices. The performance lifted first-half profits 41% to $20.1bn pre-tax, on revenue up from $84.9bn last year to $131.4bn.
Van der Veer also raised Shell�s target for asset sales by $1bn to $5bn. The company�s output has taken a hit in recent years, after it was forced to sell control of its stake in Russia�s Sakhalin-2 venture and continuing attacks in Nigeria, which made it lose 195,000 barrels a day in the second quarter.
This week, Shell suspended exports of Bonny Light crude after a raid. Van der Veer said, �We went through a difficult period in Russia a couple of years ago, but have a long term vision there and intend to continue to play a part in the country.
�In terms of Nigeria, we have a high appreciation of all of our staff that work there and understand that it is a challenging situation. We will look to go into countries with an acceptable, fiscal risk. For example, our progression in Iraq is subject to the security situation, but we are keen to make progress there. Nothing is signed yet, as many of the details take time to work out, but we are in active negotiations.�
The company is also looking to complete the acquisition of Duvernay Oil Corporation for about $5.8m, including the assumption of debt, to expand gas output in Canada, which is currently subject to regulatory approval. Van der Veer, who is due to leave his post in July next year, would not be drawn on the company�s succession plan or current oil prices.