Exclusive-Shell’s Nigerian oil assets attract interest from local firms, sources say

By Means Of Ron Bousso

LONDON – At Least five Nigerian oil and gasoline firms are preparing to post bids this month for Royal Dutch Shell’s onshore oilfields in a sale that might fetch as much as $THREE billion, 3 sources keen on the process instructed Reuters.

Shell began talks with the Nigerian executive last yr about promoting its stake within the West African usa’s onshore fields, where it has been energetic because the thirties, as a part of a world force to scale back its carbon emissions.

The Anglo-Dutch corporate has stakes in 19 oil mining leases in Nigeria’s onshore oil and gas three way partnership (SPDC), which the trade and banking sources stated have been worth $2 billion to $THREE billion.

Shell operates SPDC (Shell Petroleum Construction Company of Nigeria) and holds a 30% stake in the mission. The state’s Nigerian National Petroleum Business Enterprise (NNPC) holds FIFTY FIVE%, TotalEnergies has 10% and ENI FIVE%.

Shell has also struggled for years with spills within the Niger Delta due to pipeline robbery and sabotage in addition as operational issues, leading to pricey upkeep and top-profile complaints.

The sale has drawn hobby from independent Nigerian oil and gas corporations together with Seplat Power, Sahara Team, Famfa Oil, Troilus Investments Limited and Nigeria Delta Exploration and Production (NDEP), the resources mentioned.

No global oil firms were expected to take part in the bidding procedure at this point, the resources stated, including that bids have been due by means of Jan. 31.

A Shell spokesman declined to comment. Sahara Crew mentioned it did not touch upon market hypothesis. Seplat, Famfa, Troilus and NDEP didn’t right away respond to requests for remark.

State-managed NNPC can also choose to exercise its proper to pre-empt any sale to a 3rd corporate, the assets mentioned.

They mentioned it was once doubtful whether or not potential bidders may just lift sufficient funds as many international banks and traders became wary about oil and gas assets in Nigeria as a result of issues about environmental issues and corruption.

Some African and Asian banks, however, were nonetheless prepared to finance fossil fuel operations in the region, they mentioned.

Troilus has hired Nigeria-centered Africa Bridge Capital Management to boost as much as $3 billion for the property, in line with assets and documents seen through Reuters. Africa Bridge Capital declined to comment.

Any buyer of Shell’s property will also wish to display it will probably take care of long term harm to the oil infrastructure which has ravaged Nigeria’s Delta in up to date years, the resources said.

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