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Almost 19 Oil Mining Leases (OMLs) are expected to be put up for sale by Shell in onshore locations and shallow waters in the company’s eastern and western operations in the Niger Delta.
According to reliable sources, Shell Plc is expected to receive two final offers this week for its onshore oil and gas fields in Nigeria, The company operates assets in the Niger Delta and nearby offshore areas. Nigerian companies Heirs Oil and Gas Ltd., and ND Western Ltd. are competing to buy Shell’s 30 per cent interest in the joint venture. According to sources, Bids are due on June 10. Almost 19 Oil Mining Leases (OMLs) are expected to be put up for sale by Shell in onshore locations and shallow waters in the company’s eastern and western operations in the Niger Delta.
The value of Shell’s stake was valued at $2.3 billion, based on a long-term oil price of $50 a barrel.The stake has gone up significantly with Brent trading at about $121 currently. Last year Shell announced its plan to sell the stake, as its long-term energy transition strategy was incompatible with Nigerian operations prone to spills and theft.
Chief Executive Officer Ben van Beurden announced to the shareholders in May that the rising incidents of sabotage are beyond the company’s control that has compelled the company to consider the disinvestment.On the other hand, the locals allege that Shell is leaving the region in a “mess” after severely damaging the environment for over 60 years with no plans of cleaning up the mess before moving towards the deep offshore terrain now.
Also read;https://trendsnafrica.
https://trendsnafrica.com/
https://trendsnafrica.com/
Many more oil giants are exiting Nigeria. Exxon Mobil Corp agreed in February to sell its shallow-water unit to Seplat for about $1.3 billion. France’s TotalEnergies SE also has announced its decision to sell its 10 per cent interest in the joint venture of Shell.Meanwhile, the premium for Nigeria’s high-grade Bonny Light oil has gone up to $4 a barrel, up from $2.50 a year ago.
