HomeIndustry SectorsFinance and PolicyShell and Total sell stake in Nigerian oil block

Shell and Total sell stake in Nigerian oil block

Oil rig “’ part of
one of Nigeria’s
oil blocks
Warsaw, Poland — ESI-AFRICA.COM — 09 May 2011 – Royal Dutch Shell, France’s Total and Eni have sold a 45 % stake in a Nigerian oil block to a Polish-Nigerian consortium, according to Kulczyk Oil, a partner in the consortium.

The price paid by the consortium “’ consisting of Kulczyk Oil and Nigeria’s Nest Oil, Aries and VP Global “’ was not disclosed, but a source told Reuters the deal was worth US$600 million.

Kulczyk Oil said in a statement that it had acquired 9% of the OML 42 block, a stake which could produce 11.5 to 46.4 million barrels of oil equivalent. “Kulczyk Oil believes these estimates are cautious because they do not take into account significant volumes of gas,” the statement added.

The transaction is subject to a number of approvals, including permission from Nigerian National Petroleum Corporation, which owns the remaining 55% of the block.