Western Oil Firms May Not Renew Nigerian Licences — Shell to Sell Oil Fields

Western oil companies may not renew their operational licences in Nigeria, as Royal Dutch Shell launched a shake-up of its operations in Nigeria by offering oilfields valued at $5 billion for sale.

This, according to sources is coming owing to their dissatisfaction with the handling of the oil sector by the Nigerian government. They are also concerned about how the deregulation policy will work.
While the National Assembly is said to have promised to pass the Petroleum Bill into law before the end of this month, the date for the take off of deregulation is unknown.

Royal Dutch Shell, Exxon Mobil, Total and Chevron, which have dominated Nigeria’s energy sector for decades, have criticised the Petroleum Industry Bill (PIB), saying it could threaten billions of dollars of investment if it goes ahead in its current form.

Sources also say they are also concerned about Nigeria’s new oil ally-China. China has offered to invest $50 billion for acquiring 6 billion barrels of oil reserves in the country.

“Chinese people are not buying fields…they want to acquire reserves in Nigeria. Specifically the application was to acquire reserves of 6 billion barrels which we are currently discussing. They are prepared to spend as much as $50 billion,” special advisor to President Umaru Musa Yar’adua on energy matters, Emmanuel Egbogah had said.

AllAfrica