Connect with us

BUSINESS

Shell Puts More Onshore Assets On Sale In $3 Billion Deal In Nigeria

Published

on





Royal Dutch Shell has placed more of its onshore oil assets in Nigeria for sale with at least five Nigerian oil and gas companies preparing to submit their respective bids for the acquisition of the assets this month.

The deal was estimated to fetch up to $3 billion, Reuters quoted three sources involved in the process to have said.

Shell last year started discussions with the federal government about selling its stake in the onshore fields, where it had been active since the 1930s, as part of a global drive to reduce its carbon emissions.

The Anglo-Dutch company has stakes in 19 oil mining leases in Nigeria’s onshore oil and gas joint venture (SPDC), which the industry and banking sources said were valued at between $2 billion to $3 billion.

Advertisement

Shell operates SPDC (Shell Petroleum Development Company of Nigeria) and holds a 30 per cent stake in the venture.

The Nigerian National Petroleum Company (NNPC) Limited holds 55 per cent, TotalEnergies has 10 per cent and ENI five per cent.

Shell has also struggled for years with spills in the Niger Delta due to pipeline theft and sabotage as well as operational issues, leading to costly repairs and high-profile lawsuits.The sale has drawn interest from independent Nigerian oil and gas firms including Seplat Energy Sahara Group, Famfa Oil, Troilus Investments Limited and Niger Delta Exploration and Production (NDEP), sources said.

Advertisement

No international oil companies were expected to take part in the bidding process at this point, the sources said, adding that bids were due by January 31.

A Shell spokesman declined to comment. Sahara Group said it did not comment on market speculation.

Seplat, Famfa, Troilus and NDEP did not immediately respond to requests for comment.

Advertisement

NNPC could also choose to exercise its right to pre-empt any sale to a third company, the sources said.

They said it was unclear whether potential bidders could raise sufficient funds as many international banks and investors have become wary about oil and gas assets in Nigeria due to concerns about environmental issues and corruption.

Some African and Asian banks, however, were still willing to finance fossil fuel operations in the region, they said.

Advertisement

Troilus has hired Nigeria-focused Africa Bridge Capital Management to raise up to $3 billion for the assets, according to sources and documents seen by Reuters. Africa Bridge Capital reportedly declined to comment.

Any buyer of Shell’s assets will also need to show it can deal with future damage to the oil infrastructure which has ravaged Nigeria’s Delta in recent years, the sources said.

Advertisement
COMMUNITY REPORT16 hours ago

One Year in Office: Elumelu Hails Aniocha/Oshimili Council Chairmen as ‘More Agenda’, ‘Renewed Hope’ Agents

FEATURED20 hours ago

FG Declares Tuesday Public Holiday in Honour of Buhari

FEATURED23 hours ago

Deadly Udu Bridge Crash Claims Six Lives as Julius Berger’s Truck Collides with Broken-Down Trailer

FEATURED1 day ago

Tompolo Pays Glowing Tribute to Late ex-President Buhari

FEATURED1 day ago

We’ve Lost A Great Leader With Integrity in Buhari – Sen.Ned Nwoko

Omo-Agege
FEATURED2 days ago

Omo-Agege Threatens Lawsuit Against Social Media Blogger Over Claim of Collecting Billions from Tantita’s Surveillance Contract

FEATURED2 days ago

‘Call Your Commissioners to Order’ – Ogbe-Ijoh Leaders in Delta Tell President Tinubu, INEC Boss

COMMUNITY REPORT2 days ago

Construction of long-overdue Oko–Patani Road Captured in NDDC Budget – Sen. Nwoko Reveals

FEATURED2 days ago

Analyst Says Tinubu’s Support for Anioma State Will Cement His Legacy of Justice and Inclusivity

powershift
FEATURED2 days ago

Buhari: Tinubu Confirms Ex-president’s Death, Deploys Shettima to London

FEATURED2 days ago

BREAKING: Former President Buhari Confirmed Dead

FEATURED2 days ago

Brain Gain: Nigeria’s $20bn Remittance Not Enough — Ikpeazu Calls on Diaspora to Engage in Governance

COMMUNITY REPORT3 days ago

Omo-Agege Mourns Olomu Monarch, Describes Him as Bastion of Urhobo Culture

COMMUNITY REPORT3 days ago

NDLEA’s Teen Killing: How Sen. Nwoko Secured N200m Compensation for Deceased’s Family

COMMUNITY REPORT3 days ago

BREAKING: Ohworode of Ancient Olomu Kingdom Joins Ancestors

Advertisement
Advertisement