Royal Dutch Shell Plc is considering the possibility of selling its two oil mining licenses in the oil-rich Niger-Delta.
According to reports from Bloomberg, Heirs Holding Ltd is already raising funds to acquire the two oil mining licenses 11 and 17 valued at $2 billion. The assets include a natural gas-fired power plant which will be managed by Transnational Corporation of Nigeria Plc.
Transnational Corporation Plc in its Half year results for the period ended 31 June 2018, recorded a 44.8% increase in revenue from its Power segment of operation from N27.97 billion in half-year 2017 to N46.08 billion half-year 2018. The largest of its five revenue segments.
According to the report, the decision to sell off these assets is triggered by the continued unrest in the oil-rich region and age long accusation of environmental pollution leveled against the Dutch oil firm.
Shell has over the years faced stiff opposition in operating the Niger-Delta region, with several reports of pipeline vandalism and youth restiveness in the region. This situation has left the oil company with undeveloped oil and gas reserves.
The report also noted that discussions between Billionaire-owner, Tony Elumelu and Shell have reached an advanced stage, however, no deal has been reached.
OML 17 is a large onshore license within the NNPC/Shell JV, there are 15 oil and gas fields on OML 17, six of which are producing. Crude is exported through the Trans-Niger Pipeline, to the Shell-operated Bonny oil and gas terminal. While the OML 11 lies in the south eastern Niger Delta and contains 33 oil and gas fields of which eight are producing as at 2017. In terms of production it is one of the most important blocks in Nigeria.
Heirs Holdings Ltd is a family owned investment company with a portfolio that spans the power, oil and gas, financial services, hospitality, real estate and healthcare sectors, operating in twenty-three countries worldwide.
