Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 2-Shell to sell at least 4 more Nigeria oil blocks -sources

Wed, 31st Jul 2013 14:33

* Oil majors scaling back onshore, shallow water Nigeria

* Two blocks lie in region hit by oil theft, spills

* Nigerian firms, partnered with foreign, expected to bid

By Joe Brock

ABUJA, July 31 (Reuters) - Royal Dutch Shell willsell at least four more oil blocks in Nigeria in its latestdivestment from Africa's top oil exporter, three oil industrysources familiar with the deals said on Wednesday.

The blocks are Oil Mining Licenses (OMLs) 13 and 16 onshorethe Niger Delta, and OML 71 and 72, which are in shallow water,the sources told Reuters. A Shell spokesman declined to comment.

OML 13 and 16 lie in the Ogoniland region where Shell hasexperienced long-running disputes with local communities,multiple oil spills and widespread pipeline sabotage and theft.

OML 13 covers a large geographical area and has big gasreserves, while OML 16 is a much smaller asset, sources said.OML 72 has proven oil reserves of around 120 million barrels,while OML 71 has significantly lower reserves, one source said.

Shell has been discussing renewing these licenses with theNigerian government for years but has yet to reach a deal.

The blocks are in joint ventures, with the Nigerian NationalPetroleum Corp. (NNPC) owning 55 percent, Shell 30 percent,Total 10 percent and Eni 5 percent. In allprevious deals, Total and Eni have also sold their shares.

Eni declined to comment and Total had no immediate commenton what their plans were for their stakes in the blocks.

Shell said in June that it was considering further sale ofassets in the eastern Niger Delta, where it has securityproblems - although it has never publicly connected the two.

The oil major said then that it was still committed toNigeria long term. It has already sold eight Niger Deltalicences for a total $1.8 billion since 2010.

OTHERS SELLING

Chevron is also selling five shallow water blocks,while fellow U.S. firm ConocoPhillips is selling itsNigerian businesses to Oando Energy for about $1.79billion.

Despite a scale-back by foreign firms onshore and in shallowwater in recent years, oil majors like Shell, Exxon Mobil and Chevron remain keen on expanding deep offshore,where terms are more favourable and security risks reduced.

Nigeria's "local content" policy means Shell's latest assetswill likely have to be sold to local firms, although in previousdeals smaller foreign partners usually supported the bids.

Shell is in talks with NNPC about the sales initially beforeapproaching potential buyers, two sources said.

In previous deals rows over who would take over from Shellas operator of the blocks slowed down sales because some buyersinitially thought they would run the blocks before NNPC'soperating arm NPDC took up its right to be the operator.

Potential buyers will want clarity on who will operate theblocks, what steps will be taken to tackle security issues andwho will manage Shell's infrastructure before a value can be puton each of the assets, the sources said.

Previous buyers of Shell blocks include London-listed firmsAfren and Heritage Oil, while Nigeria's Oandoalready owns a marginal field in OML 13.

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

Read more
21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

Read more
15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, part of an ongoing retreat of long-time producers from the ageing basin.

Read more
7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating the firm was "on a roll".

Read more
31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Read more
31 Jan 2022 07:48

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

LONDON MARKET PRE-OPEN: WeBuyAnyCar owner buys into Lookers

Read more
28 Jan 2022 11:25

Shell's renewables boss steps down after less than two years

* Elisabeth Brinton leaves for new role, she says* Shell creates two new renewables leadership roles* Thomas Brostrøm to head renewables generation* Steve Hill to head energy marketingBy Ron BoussoLONDON, Jan 28 (Reuters) - Shell's head of renewable...

Read more
27 Jan 2022 16:14

UK earnings, trading statements calendar - next 7 days

UK earnings, trading statements calendar - next 7 days

Read more
26 Jan 2022 17:02

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

LONDON MARKET CLOSE: FTSE 100 soars ahead of Fed as oil, travel gain

Read more
26 Jan 2022 14:36

China's Sinopec awards fewer cargoes in recent LNG tender

By Chen Aizhu and Marwa RashadSINGAPORE/LONDON, Jan 26 (Reuters) - Unipec, the oil and gas trading arm of China's Sinopec Corp has awarded fewer-than-planned cargoes in a recent tender to sell up to 45 cargoes of liquefied natural gas for 2022 del...

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 09:33

UPDATE 2-Commodity, bank stocks lead FTSE 100 higher; Playtech drops

* Oil and banking shares top gainers* Wizz Air reports Q3 loss, expects improvement in spring* FTSE 100 up 1.3%, FTSE 250 add 1.1% (Updates to market close)By Shashank Nayar and Ambar WarrickJan 26 (Reuters) - London's FTSE 100 rose on Wednesday wit...

Read more
26 Jan 2022 09:12

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Read more
25 Jan 2022 21:13

UPDATE 1-U.S. awards 13 mln barrel exchange of crude from strategic reserve

(Adds details on sale, background on 50 million barrel SPR plan)WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to ...

Read more
25 Jan 2022 20:10

U.S. awards exchange of 13 mln barrels of crude from strategic reserve

WASHINGTON, Jan 25 (Reuters) - The U.S. Department of Energy said on Tuesday it had approved an exchange of 13.4 million barrels of crude oil from the Strategic Petroleum Reserve to seven companies.The companies are Shell Trading US, 4.2 million ...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.