• Sunday, July 21, 2024
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Taleveras/IS45, Seplat, Transcorp in last ditch battle for OML 29


The battle for the much-sought-after OML 29 oil bloc promises to go through the wire as three firms – Taleveras/IS45, Seplat and Transcorp – slug it out on the finish line. Seplat and Transcorp offered $2.4 million each, while Taleveras and IS45 put in the highest bid of $2.85 million.

BusinessDay gathered that Royal Dutch Shell will take final decision later this month on who will emerge the preferred bidder for the group’s 45 percent stake in the OML 29. It was further gathered that Glencore and its Nigerian partner, Nestoil, have since dropped out of the race after evaluating their chances.

Shell is keeping a close eye on the Taleveras and IS45 bid.

OML 29 holds the site of Nigeria’s first discovery, Oloibiri field, in addition to Nembe Creek field, Santa Barbara and Odeama Creek fields, all of which are producing. The field started oil production between late 1957 and early 1958 and the first oil production from the field came at the rate of 4,928 barrels per day. The production increased thereafter as more wells were completed and put onto production.

The sales are part of a wider plan by Shell to dispose of $15 billion of assets this year and 2015, in order to slim down operations after a profit warning.
Shell is divesting its 30 percent stake in four Nigerian oil blocs, with France’s Total and Italy’s Eni also set to profit from their 10 percent and 5 percent shares. The Nigerian National Petroleum Corporation (NNPC) owns the remaining 55 percent.

Frank Uzuegbunam