Shell Nigeria oil sales face tricky final hurdles

Reuters

26 March 2011

Shell Nigeria oil sales face tricky final hurdles

* Financing, NNPC could be stumbling blocks
* Essar Energy outbid; Elan Oil, Niger Delta Ltd still in

* Delayed energy reforms add to buyers uncertainty

ABUJA, March 26 (Reuters) - Royal Dutch Shell (RDSa.L) has shortlisted bidders for the four Nigerian onshore oil blocks it has put up for sale but financing challenges and negotiations with state-oil company NNPC could yet undo best laid plans.

India's Essar Energy (ESSR.L) said this week it was unsuccessful in its bid for Shell's Niger Delta assets, which are widely understood to be blocks 30, 34, 40 and 42.

These zones all have sizeable reserves and have attracted bids of over $1 billion, sources close to the deals have said. Shell has declined to comment.