Royal Dutch Shell’s revenues from assets sale in Nigeria is to hit $7 billion in four years as representatives of the company met with government on the final lapse of the sale of equity in Oil Mining Lease (OML) 29, the Nembe Creek Pipeline and other assets. Investigation by New Telegraph revealed that the Anglo- Dutch Company had made $1.8 billion since the 2010 beginning of its divestment drive in Nigeria.

A source at the Ministry of Petroleum Resources told this newspaper at the weekend that Shell and representatives of the minister are already advancing talks on how to secure ‘minister’s consent’ for the sale of new assets. “The winners of these assets have also joined in the lobbying government for this approval,” he said.

The value of new assets on sale has, according to Reuters, skyrocketed to $5 billion and this made the cumulative revenues from assets sale in Nigeria to be $6.8 billion. The assets include the OML 29 as well as the 97-kilometer (60-mile) Nembe Creek oil pipeline,” a source said, adding that only “OML 29 is likely to fetch between $1 and $1.5 billion.”

Spokesperson for the Nigerian subsidiary of the company, Precious Okolobo, had earlier confirmed the on-going divestment of assets, stating that the process was on-going. He described the process, in a telephone interview, as confidential while declining to make further comments on the transactions. OML 29 is the most coveted asset of the four being sold. Its output had peaked at 62,000 bpd of oil and 40 scf/d of gas and holds reserves of 2.2 billion barrels of oil equivalent (boe), according to a Shell prospectus.

Shell is selling its 30 per cent stake in four oil blocks, with France’s Total and Italy’s Eni also set to profit from sales of their 10 per cent and five per cent stakes. The Nigerian National Petroleum Corporation (NNPC) owns the remaining 55 per cent. Shell is also selling the 97-km (60-mile) Nembe Creek oil pipeline, which has been regularly attacked by oil thieves.

Shell, the London-listed major, has already made $1.8 billion from asset sales in Nigeria since 2010 as several oil majors divested onshore blocks due to oil theft and a government drive to increase local ownership.

Royal Dutch Shell has re-leased the confidential list of shortlisted bidders for its N480 billion worth of oil blocks and assets in the Niger Delta, which holds a large portion of Nigeria’s 37 billion barrels of reserves. Competition is stiff for the blocks in the Niger Delta, which holds a large portion of Nigeria’s 37 billion barrels of reserves.

The oil is high-quality, relatively easy to drill and Nigerian firms say they can better handle security challenges that have prompted the majors to divest. Commodity trader, Glencore, involved in marketing Nigeria’s crude oil and importing its fuel for decades, is among the companies vying to enter its upstream sector. Shell is also selling the nine kilometre (60-mile) Nembe Creek oil pipeline, which has been regularly attacked by oil thieves.

Glencore has linked up with Nigerian traders Taleveras and Aiteo for its bid on OML 29, say two oil industry sources.

These two firms are involved in Nigeria’s crude-for-product swap deals.