Saturday, October 25, 2014

Shell


Shell close to deal for Nigeria oil blocks

Anglo-Dutch Shell is close to completing the sale of its stake in four Nigerian onshore oil blocks after receiving bids from several foreign and local companies, industry sources close to the deals said.

News wires 09 March 2011 17:35 GMT

Shell said last year it had received interest from a number of bidders for the four blocks it owns along with partners Total, Eni and state-oil company NNPC as it looked to dispose of non-core Nigerian assets.

Shell has not revealed which blocks were for sale but several industry sources have said negotiations are ongoing over blocks OML 30, 34, 40 and 42, which are all onshore developments in the Niger Delta with sizeable proven reserves, Reuters reported.

Some of these assets hold over 300 million barrels of proven oil reserves and bids for the largest block have exceeded $1 billion, industry sources said.

Shell confirmed today four blocks were still on offer but had no further comment.

Shell has said it hopes indigenous companies would bid and analysts believe local players, who are likely to be partnered by foreign oil companies or independent investors, will have the best chance of securing the blocks.

Oil services company Petrofac said this week its Nigerian partner Seven Energy was bidding for one of the blocks, while local players Oando, Vertex Energy, Niger Delta and Conoil are all involved in current bids, sources said.

None of these companies were available for comment.

Shell Oil