Shell set to receive final offers for $2.3 billion oil assets from Heirs Holdings, ND Western

Shell set to receive final offers for $2.3 billion oil assets from Heirs Holdings, ND Western

Shell Plc will receive two final bids for its stake in its Nigerian joint venture this week from Tony Elumelu’s Heirs Holdings and local firm ND Western Limited, Bloomberg reported Wednesday, citing people close to the heart of the matter.

The two are scrambling to procure Shell’s three-tenths holding in the JV located in the crude-rich Niger Delta region and offshore fields neighbouring it.

Shell will stop welcoming bids on Friday, according to the people who spoke on the condition that their identities will be concealed, given the sensitivity of the subject.

In 2021, oil and gas consultancy research house WoodMac estimated Shell’s own slice of the partnership at $2.3 billion based on a long-term oil price of $50 per barrel.

But as Brent now hovers around $121, the value of Shell’s interest is likely to be way higher.

Tony Elumelu, chairman Heirs Holdings

Last year, the oil major said it was willing to divest its interest while noting that its long-term energy transition blueprint is out of tune with the operating environment in Nigeria, where oil installations and pipelines are target of vandals and where crude spills and theft are rife.

READ ALSO:  Russia attacks Ukraine's former capital, kills 11 amid peace talks

Ben van Beurden, Shell’s chief, informed shareholders last month a steep surge in attacks recently has sparked off a near-chaos situation its firm could not handle.

“In the end, we have to concede that this is beyond what we can do,” Mr Beurden said.

According to two people privy to the transaction, possible future costs linked to litigation and environmental liabilities could influence the valuation of Shell’s stake.

Seplat Energy and Sahara Group, who this February launched non-binding bids for the stake are no longer in contention, the people said.

Exxon Mobil Corp is also walking that path having announced in February it planned to offload its shallow-water operations to Seplat for around $1.3 billion.

TotalEnergies is also on track to divest its 10 per cent holding in the same JV involving Shell.


WATCH: Governor Yahaya Bello’s Roadmap to Hope 2023



CITIZEN-FM AD


Support PREMIUM TIMES’ journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate

READ ALSO:  How Tiwa Savage's sex tape shook Nigerian entertainment scene in 2021


TEXT AD: Call Willie – +2348098788999







PT Mag Campaign AD



News Source


Tech Solutions with THE DGIT:

Build Your Websites and Mobile Apps

%d bloggers like this: