Dangote in new bid for Shell asset

Proshare

March 26, 2014 / African Energy Intelligence

 

Nigerian tycoon Aliko Dangote is moving to acquire Shell’s stake in the OML 18 gas field.

 

The Dangote Group of Companies put in the highest bid for Shell’s stake on OML 18 in an auction the Anglo-Dutch giant organized last year in the Niger Delta.

 

On the field, which houses reserves of nearly 1.5 billion BOE of gas, Shell operates the Alakiri Creek plant which processes 80 MMpc/d of gas, a figure that will shortly rise to 120 mmsf/d.

 

The plant belongs to the Shell East Nigeria Gas Cluster that counts other processing plants on Okoloma, Obigbo and Imo River.

 

Like Sahara Energy, which has just acquired OML 24 from Shell, Dangote already tried to buy stakes from the major in 2010, putting in a bid for Shell’s 45% holding on OML 30, to no avail .

 

Up until now, the Dangote Group of Companies, primarily active in cement, had held only minority stakes in the upstream, all of which it acquired during the presidency of Olusegun Obasanjo, whom Dangote strongly supported.

 

For instance, Dangote Energy Equity Resources (DEER), the conglomerate’s E&P subsidiary, owns 9% of block 1 in the Joint Development Zone between Nigeria and Sao Tome, where Chevron is operator, and 10% of block 3 in the same zone that Anadarko operates.

 

Dangote also owns 6% of block 315 which was operated between 2005 and 2010 by Petrobras and hasn’t had an operator since the Brazilian firm pulled out .

 

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