Tuesday, April 5, 2011

Conoil wins $650 million bid for SPDC’s Nigeria OML 30!! Shell to continue divesting Nigeria blocks.

Nigeria's billionaire business mogul, Dr. Mike Adenuga Jnr, has won Shell's most prolific onshore oil block, OML 30, located in the Niger Delta. Adenuga's Conoil Producing had submitted a bid of $650 million for each of OMLs 30 and 42. Adenuga's acquisition covers Shell's 30% stake; Total's 10% interest, and Agip's 5% stake in OML 30. OML 30 is currently producing 45,000 barrels a day. According to a report by Africa Energy Intelligence, OML 30 has 350 million barrels of proven reserves.

Shell previously said it is looking to divest $5 billion in assets this year and has sold $30 billion in assets over the past five years. Shell's recently sold its stake in Niger Delta license OML 40 to Elcrest E&P Nigeria, and said it expects to conclude the sale of its stakes in two more onshore licenses soon.

Shell, which has already sold four of its onshore licenses in the country, launched the process to offload its 30% stakes in OMLs 30, 34, 40 and 42 last year. The licenses were said to be valued at around $4 billion. The sales are part of a Shell plan to reduce its footprint onshore Nigeria, where militant attacks and oil theft have slashed the company's output since 2006. The decision to sell assets in Nigeria is also in line with the government's plan to promote indigenous participation in the industry. Essar offered $800 million for the stake in OML 30. Other bidders were said to be: Afren ($755 million); PanOcean ($750 million); Conoil ($650 million); African Petroleum ($515 million); and Oando ($450 million).

More Nigerian pieces up for grab!!

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