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Shell reportedly accepted bids for SPDC

stake from 2 Nigerian firms on June 10

NIGERIA TWO Nigerian companies, ND Western Ltd company had been experiencing increasing
and Heirs Oil and Gas Ltd, were expected to difficulties in recent years and indicated that it
submit final offers to Shell (UK) for a 30% stake was approaching a turning point. “In the end,
in the Shell Petroleum Development Corp. we have to concede that this is beyond what we
(SPDC) joint venture by the due date of June 10, can do,” he remarked.
according to a report from Bloomberg. According to Bloomberg, these struggles
Sources with knowledge of the matter told may end up affecting the final sale price of the
the news agency on June 9 that ND Western SPDC stake. Shell has been saying it expects
and Heirs were the only two parties that were on the 30% holding to fetch $2-3bn, but the news
track to make binding offers for the stake. Two agency’s sources said that the valuation might be
other Nigerian firms that submitted non-bind- affected by expectations of future costs related to
ing bids earlier this year, Seplat Energy Plc and environmental penalties and litigation.
Sahara Group Ltd, are no longer in the contest, The multi-national, which has been active
they said, speaking on condition of anonymity in Nigeria since the 1930s, began discussions
as the matter was private. with officials in Abuja on the sale of its holdings
As of press time, it was not clear whether the in SPDC last year. The remaining equity in the
Nigerian companies had submitted offers as joint venture is split between Nigerian National
expected. Neither Shell, ND Western nor Heirs Petroleum Co. Ltd (NNPC Ltd), with 55%;
have commented publicly on the matter, and the France’s TotalEnergies, with 10%; and Italy’s Eni,
Nigerian press did not reveal any new informa- with 5%. ™
tion over the weekend.
Bloomberg’s sources did not comment
on the reasons for Seplat and Sahara’s alleged
withdrawal from the bidding contest, which
is designed to allow Shell to shed most of its
onshore portfolio in Nigeria. The company has
said it wants to sell these assets as part of a wider
effort to optimise its portfolio and reduce car-
bon dioxide emissions.
Ben van Beurden, the super-major’s CEO,
has linked this interest in decarbonisation and
the energy transition with Shell’s ongoing strug-
gle to contain sabotage, oil spills and theft at its
onshore pipelines and installations in south-
ern Nigeria. In May 2022, he noted that the SPDC controls 19 onshore fields in southern Nigeria (Image: Shell)

ANPG notes TotalEnergies’ FID

on Phase 3 development of CLOV

ANGOLA ANGOLA’S National Agency for Petroleum, capacity at the Cravo, Lirio, Orquidea and Vio-
Gas and Biofuels (ANPG) said on June 10 that leta fields, which have been in production since
France’s TotalEnergies had made a final invest- 2014. This additional capacity is slated to come
ment decision (FID) on Phase 3 development at on stream in 2024, it noted.
CLOV, four offshore oilfields located within the The agency went on to say that the Phase 3
Block 17 licence area. project called for extending subsea production
In a statement, ANPG said that the FID networks and interconnections to the floating
cleared the way for the French major and its production, storage and off-loading (FPSO) ves-
partners to spend $850mn on the expansion of sel that is supporting operations there, it noted.

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