Shell cashes out, sells four major oil fields to Nigerian firms

by Kolapo Olapoju

On Wednesday, 27 August, oil and gas company, Royal Dutch Shell announced that it has sold four oil fields it owns in Nigeria, as part of its global assets sale, in a bid to cut costs.

A shell spokesman said, “We have signed sales & purchase agreements for some of the Oil Mining Leases, but not all that we are seeking to divest.”

The spokesperson, however, did not divulge details of the deal or the timeline for the completion of the sale-process.

The Financial Times also just reported that Shell is in the final phase of selling the assets for about $5 billion to Nigerian buyers.

In 2013, Shell sold its 30 percent shares in four oil blocks in the Niger Delta ‘Oil Mining Licence (OML) 18, 24, 25, 29, and another major pipeline, the Nembe Creek Trunk Line.

In March of this year, Reuters reported that two Nigerian firms Taleveras and Aiteo had made the highest bid of $2.85 billion for the biggest of the four oil fields, OML 29.

Besides Shell, some other major oil companies like, Eni, Total, and Chevron, are in the process of selling their assets around the world in a bid to cut costs and substantially increase profits.

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