Royal Dutch Shell is receiving bids for stakes in four of its Nigerian oil fields, according to a report by Bloomberg.
Companies bidding include Essar, Afren and Perenco, said the report. Essar is bidding with Nigeria’s Energy Equity Resources, and French company Perenco has teamed up with Switzerland’s Addax & Oryx Group and Oando. The UK’s Heritage Oil is also said to be bidding alongside the Nigerian contractor Shoreline Energy International.
Private equity firms are also thought to have expressed interest in the stakes.
Shell is keen to sell off stakes in the onshore fields as part of its strategy to divest itself of $5 billion of assets this year. Over the last five years the company has sold a total $30 billion of assets. Last week it said it planned to sell its retail fuel business in 14 African countries to the oil trader Vitol Group and a private equity firm, for $1 billion.
Shell may opt to sell off the Nigerian fields individually; and will retain a further 30 blocks in the country. The blocks sold and for sale represent less than 10 per cent of Shell’s production in Nigeria.
Shell has been operational in Nigeria since 1936. Its activities in the country include oil and gas exploration and production onshore and offshore, and gas sales and distribution. The company also has an interest in Nigeria’s largest liquefied natural gas plant.
The company’s operations in the Niger Delta are spread over 30,000 square kilometres and include a network of more than 6,000 kilometres of flowlines and pipelines, 90 oil fields, 1,000 producing wells, 72 flowstations, 10 gas plants and two major oil export terminals, at Bonny and Forcados.
Shell’s Nigerian offices are based in Port Harcourt, Warri, Lagos, and Abuja.
