Nigeria Sun
28 Aug 2014, 11:44 GMT+10
LONDON - Royal Dutch Shell is close to disposing of its stakes in four oil fields in Nigeria as part of plans to cut costs through a $15 billion global assets sale.
On sale is a 30 percent stake in four oil blocks in the Niger Delta -- Oil Mining Licence (OML) 18, 24, 25, 29 -- as well as a key 60 mile long pipeline, the Nembe Creek Trunk Line.
"We have signed sales and purchase agreements for some of the Oil Mining Leases, but not all that we are seeking to divest," Shell said in a statement Wednesday.
The global energy major did not give any details on the value of the deals signed, nor when it expects to complete the sale process.
Quoting two people familiar with the negotiations on with a cluster of prominent Nigerian oil companies, which have emerged as prominent buyers, the Financial Times Wednesday reported that the deal could amount to a value of $5.2 billion.
Buyers for the four blocks have been selected, but two bidders are still negotiating their contracts, FT reported
Shell's consortium partners in the block France's Total and Italy's Eni are also in the process of monetizing their 10 percent and 5 percent stakes respectively in the assets. The remaining 55 percent stake in the four oil fields is held by state-owned Nigerian National Petroleum Corporation (NNPC).
In March, Reuters news agency had reported that Nigerian firms Taleveras and Aiteo had made the highest bid of $2.85 billion for OML 29, the biggest of the four oil fields.
Shell is among an increasing number of global energy companies including Total, Eni, Chevron and ConocoPhillips that have commenced the process of pulling out of oil rich Nigeria, which is plagued with multiple problems, particularly oil thefts.
Another $10 billion worth of assets from international companies are expected to be disposed off in the next few years.
"In June 2013 we announced a strategic review of our operations in the Eastern Niger Delta, which we said could result in the divestment of some of our interests there," Shell Petroleum said.
"A process of staff engagement for those potentially impacted in the event of a successful divestment has begun and will continue over the coming months."
Of the about $15 billion worth of asset sales proposed through 2015, Shell Chief Executive Officer Ben Van Beurden has already completed about $8 billion in sales this year.
The Hague-based company earlier this month sold two natural gas assets in Wyoming and Louisiana for $2.1 billion plus shale acreage in Pennsylvania.
Get a daily dose of Nigeria Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nigeria Sun.
More InformationBRUSSELS, Belgium: The majority of European Union nations will have enough Covid vaccinations to inoculate over 55 percent of their ...
Britain's Prince Philip, the Duke of Edinburgh, has died at the age of 99 after seven decades at the heart ...
ATLANTA, Georgia: There is no significant risk of catching coronavirus from surfaces, the Centers for Disease Control and Prevention has ...
WASHINGTON D.C.: Two Yemeni men on a U.S. terror watchlist were arrested earlier this year when they attempted to illegally ...
DUBLIN, Ireland - Taoisdeach Micheal Martin says he is deeply concerned about Thursday night's attacks on a journalist and bus ...
MANILA, Philippines: A top Filipino official has warned of additional moves by the Chinese in the South China Sea."The continued ...
Johannesburg [South Africa], April 10 (ANI): Mohammad Rizwan continued his excellent form against the Proteas by recording yet another half-century ...
Illicit liquor worth R10 million was seized by police during a raid on a Douglas house in Northern Cape on ...
The North West government has reported an outbreak of African Swine Fever in pigs at a Wilgeboom farm in Potchefstroom. ...
GENEVA - The World Health Organization is warning that COVID-19 cases and deaths are rising globally, partly because of complacency ...
Johannesburg [South Africa], April 10 (ANI): The Interim Board of Cricket South Africa (CSA) on Saturday welcomed the decision taken ...
The Proteas will bat first in the opening T20 international against Pakistan at the Wanderers on Saturday after stand-in captain ...