Shell has agreed to sell its Nigerian oil block and an associated pipeline to Nigerian-based Taleveras Group for US$2.5bn, said sources close to the matter
The oil block, known as Oil Mining License 29, is the largest of the southern Niger Delta assets that Shell had put up for auction in 2013. In addition to the oil block, Shell and Taleveras Group deal also includes Nembe Creek pipeline.
“Nembe Creek pipeline is an aging pipeline prone to leaks, which still serves as one of the country’s main crude arteries. However, it is also potentially a lucrative source of revenue, given that other companies pumping oil in the region pay to use it to get their crude to market,” said one of the sources to WSJ.
“We have signed sales and purchase agreements for some of the oil mining leases in Nigeria but not all that we are seeking to divest,” said a Shell spokesperson.
Taleveras Group said in a statement that it was among the preferred bidders of Oil Mining License 29 oil block.