Shell to sell four blocks in Nigeria

shell-loopoh flickrShell is looking for buyers for four blocks in Nigeria. (Image source: Loopoh/Flickr)Shell has revealed that it is looking for buyers to sell a pair each of onshore and offshore blocks in Nigeria

The blocks for sale are Oil Mining Licenses (OMLs) 13 and 16, located onshore the Niger Delta in Ogoniland, and OMLs 71 and 72, which are located in shallow waters.

OML 72 has proven oil reserves of around 120mn barrels, while OML 71 has significantly lower reserves, a Shell source said.

Shell has been discussing renewing these licences with the federal government for years but has yet to reach a deal, the source added.

The oil blocks are in joint ventures with the Nigerian National Petroleum Corporation (NNPC), which controls 55 per cent while Shell and its partners — Total and Eni — have 30 per cent, 10 per cent and five per cent stakes respectively.

The Anglo-Dutch explorer said that it has already sold eight oil block licences in the west African country for a total amount of US$1.8bn since 2010.

Meanwhile, Chevron Nigeria Limited, subsidiary of US-based Chevron, also plans to sell five shallow water blocks, while fellow US firm ConocoPhillips is selling its Nigerian businesses to Oando Energy for about US$1.79bn, according to local media reports.

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