Shell to Resume Talks to Sell Nigerian Oil Fields to Local Firm
Royal Dutch Shell Plc is reportedly set to resume talks to sell some of its Nigerian oil fields to a local firm. The oil giant is said to be in negotiations with Eroton Exploration and Production Company Ltd. to offload some of its assets in the West African nation.
Shell’s Presence in Nigeria
Shell is one of the largest oil and gas companies in the world and has been operating in Nigeria since 1937. It is the largest oil producer in the country, accounting for about 40% of the nation’s total oil production. The company has a long history of exploration and production activities in Nigeria, and it currently operates more than 200 oil and gas fields in the country.
Nigeria’s Oil Industry
Nigeria is Africa’s largest oil producer and one of the world’s top 10 oil producers. The country is estimated to have the ninth-largest proven oil reserves in the world, with an estimated 37 billion barrels of oil. Oil and gas account for about 90% of Nigeria’s export earnings and more than 70% of its government revenue.
Eroton Exploration and Production Company Ltd.
Eroton Exploration and Production Company Ltd. is a Nigerian oil and gas exploration and production company. It is a joint venture between the Nigerian National Petroleum Corporation (NNPC) and a consortium of Nigerian investors. The company was established in 2018 and is focused on developing and producing oil and gas resources in Nigeria.
Shell’s Asset Sale Talks
Shell has been in talks with Eroton Exploration and Production Company Ltd. since 2019 to sell some of its Nigerian oil fields. The company is reportedly looking to offload some of its assets in the country as part of its strategy to focus on more profitable areas. The sale of the assets is expected to generate billions of dollars for Shell.
Impact of the Sale
The sale of Shell’s assets in Nigeria is expected to have a significant impact on the country’s oil industry. It could lead to increased investment in the sector, as well as increased production and revenue for the government. It could also create more jobs and boost the economy.
Conclusion
Shell is reportedly set to resume talks to sell some of its Nigerian oil fields to a local firm. The sale of the assets is expected to generate billions of dollars for Shell and have a significant impact on the country’s oil industry. It could lead to increased investment in the sector, as well as increased production and revenue for the government.