Tuesday, October 26, 2010

Nigeria: Ex-British Petroleum's CEO Leads Bidders for $4b Shell Oil Fields


Abuja — Former chief executive officer of British Petroleum John Browne is to lead a group of bidders for $4 billion of Nigerian oil fields being sold by Royal Dutch Shell Plc, a report published by the Sunday Times stated yesterday.

Shell's plan to reduce its investments in Nigeria has been described by some industry watchers as a reaction to the hassles in Nigeria's exploration terrain.

"Browne's Riverstone Management Ltd. is interested in bidding, as is KKR & Co. and Blackstone Group LP," the report said.

"Another bid group includes Perenco SA, Addax & Oryx Group Ltd. and Oando Plc," the report added. Any bidder will have to have a local partner to meet government requirements, it said.

The report further said that partners ENI SpA and Total SA have the right to buy Shell's 30 per cent stake in the fields, and Nigeria's majority holding national oil company (NNPC) must approve any deal.
Oil Companies Reducing Investment in Nigeria?

LEADERSHIP reported last week that Africa-focused oil and gas company, Afren Plc., said its Nigerian unit had agreed to buy a stake in oil fields in Nigeria from Royal Dutch Shell Plc, Total SA and Eni SPA.

First Hydrocarbon Nigeria Co. Ltd., in which Afren has a 45 per cent stake, agreed to buy a 45 per cent stake in OML 26 in Delta State for $187.5 million, which includes the cost of the acquisition and First Hydrocarbon Nigeria's share of planned development.

According to Afren, "OML 26 contains two producing fields and three undeveloped assets.

The area contains recoverable reserves and contingent resources of 184 million barrels of oil and could contain another 615 million barrels of oil equivalent resources."

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