Shell to Sell $2bn Oil Blocks

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Shell has reportedly initiated negotiations with local oil producers for selling two of its Nigerian oil licences in the Niger Delta, collectively worth $2 billion.

The Anglo-Dutch petrochemical giant is in talks about selling its Oil Mining Licenses (OMLs) 11 and 17, according to sources familiar with the planned deal.

Sources close to the matter revealed that the deal would involve selling essential infrastructure assets as well, including a natural gas-fired power plant that will be managed by Transactional Corporation of Nigeria Plc (Transcorp).

They further disclosed that initially, talks between Shell and the local buyers were at an advanced stage.

OML 11 is one of the biggest blocks in south-east part of Niger Delta and has 33 oil and gas fields, eight of which were producing as of 2017.

The federal government had supposedly divided the block into three portions in April, offering one to Shell after it confirmed renewal of its production licence.