Shell to divest Nigerian assets worth $5-billion
21 Dec 2009
Europe's largest oil company, Royal Dutch Shell PLC, is seeking buyers for 10 of its Nigerian onshore oil-production assets, which is expected to have a market value of $4-5 billion, following years of militant attacks on its facilities.
The Anglo-Dutch company's Nigerian onshore operations represent proven oil reserves of about 100 million barrels.
However, the company will retain its natural-gas export business in Nigeria. It has a 26-per cent stake in Nigeria Liquefied Natural Gas Ltd., which ships gas to Europe and the US.
Analysts see Shell's plan to leave the country were mainly due to the militant attacks and public litigations, which cause operational headaches for the oil giant (See: Royal Dutch Shell settles Nigerian human-rights abuse case for $15.5 million).
The company has borne the brunt of militant attacks over the past four years at its Nigerian onshore facilities, at a loss of hundreds of millions of dollars in profit since 2006.
The company has been blamed by locals for the oil spills and environmental damage resulting in attacks on its installations by militants (See: Nigerian militants target Chevron, Shell oil installations; capture ship).
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