Heirs Oil and Gas, ND Western to Finalize Shell’s $2.3bn Oil Asset Acquisition Today

Shell Plc is expected to finalize offers from Heirs Oil and Gas Ltd and ND Western Ltd today for its onshore oil and gas projects in Nigeria.

Bloomberg reported that Heirs Oil and Gas Ltd and ND Western Ltd are competing to buy Shell’s 30% interest in the joint venture, which operates assets in the Niger Delta and nearby offshore areas. Reports obtained by Investors King reveal the bids are due today, June 10.

Shell announced its intention last year to sell the stake, saying its long-term energy transition strategy was incompatible with Nigerian operations prone to spills and theft. Chief Executive Officer Ben van Beurden told shareholders in May that a significant increase in sabotage in recent years had resulted in a state of near-lawlessness that the company couldn’t control.

“In the end, we have to concede that this is beyond what we can do,” he said.

Investors King had reported that Heirs Oil and Gas Ltd., ND Western Ltd. alongside Seplat Energy and Sahara Group were in discord over an equity interest said to be worth $4 billion.

In January, the four bidders submitted non-binding offers for a share valued at $2.3 billion by Wood Mackenzie in August, based on a long-term oil benchmark of $50 per barrel. But with Brent now trading at about $121, the stake likely is worth significantly more.

Further findings revealed that Shell holds 30% of the joint venture, while the Nigerian National Petroleum Corporation (NNPC) owns 55%, TotalEnergies SE owns 10%, and Eni owns 5%.

While Shell is retaining its deepwater oil assets and its large liquefied natural-gas presence, the company’s exit from the Nigerian onshore follows its counterpart, Exxon Mobil Corporation who had made plans to sell its shallow-water operation to Seplat for $1.3 billion in February, and TotalEnergies SE of France who wants to sell its 10% stake in the same joint venture Shell is quitting from.

Billionaire Tony Elumelu owned Heirs Oil and Gas Limited.