Company looking to exit blocks in controversial Niger Delta
Millionaire Tony Elumelu said to be raising funds for deal
Royal Dutch Shell (RDS.A, RDS.B) is engaged in talks to sell two Nigerian oil licenses, including infrastructure assets, for $2 billion, Bloomberg News reported, citing sources.
The Anglo-Dutch energy giant is discussing selling oil mining licenses (OML) 11 and 17 to Heirs Holding Ltd., a company run by Nigerian businessman Tony Elumelu, sources said. Included in the sale are infrastructure assets such as a natural gas-fired power plant that would be managed by Elumelu’s other company, Transnational Corporation of Nigeria Plc.
Negotiations between the two parties have been advanced at times and have been complicated at others as the Nigerian tycoon is still seeking financing. No deal has been reached and the discussions could still falter, sources told Bloomberg News.
Shell declined to say how much resources OML 11 and 17 hold. It also declined to comment on the sale.
The oil company sold billions of dollars of Niger Delta assets in the past decade amid local opposition, civil unrest, militant attacks and accusations of environmental degradation.
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