Shell Nears Deals With Local Bidders for Nigerian Assets

Wall Street Journal

5 March 2011

Shell Nears Deals With Local Bidders for Nigerian Assets

By WILL CONNORS

LAGOS, Nigeria—Royal Dutch Shell PLC is close to selling four of its onshore oil blocks in Nigeria to local oil producers eager to snap up Western oil majors' properties as unrest in North Africa and the Middle East boosts global crude prices.

Shell's sale of the four blocks, including one valued at over $1 billion, is expected to close within days, according to a person familiar with the matter. The sales are part of a Shell plan to reduce its footprint onshore Nigeria, where militant attacks and oil theft have slashed the company's output since 2006. The Nigerian government is also considering legislation that could make it easier to confiscate non-producing or dormant oil fields from companies.

A Shell spokesman confirmed that the four blocks were up for sale but declined further comment.