Shell, Total, Eni Nigerian energy stakes could get ~$3B bid, Reuters says

Commodity trading houses Glencore (GLCNF, GLNCY) and Mercuria are expected to make final bids on Nigerian energy assets worth ~$3B that Royal Dutch Shell (RDS.A, RDS.B), Total (TOT) and Eni (E) are selling, Reuters reports.

Shell is selling its 30% stake in four oil blocks, while TOT and E are set to sell respective 10% and 5% holdings; Shell also seeks to sell the 60-mile Nembe Creek oil pipeline, which has been regularly attacked by oil thieves.

The blocks' combined output averaged 90K bbl/day of oil and 60M cf/day of gas in 2012 and they hold reserves of 4.6B boe, according to a Shell report seen by Reuters.

Comments (2)
  • john001
    , contributor
    Comments (1217) | Send Message
    great news if shell can pull off the sale.
    12 Feb 2014, 11:52 AM Reply Like
  • papayamon
    , contributor
    Comments (1426) | Send Message
    anything in nigeria is a disaster from a security standpoint. there may be oil there, but this makes it too expensive to produce. this is why oil isn't going to $50 a barrel - the majors are having trouble controlling costs.
    12 Feb 2014, 12:46 PM Reply Like
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