Heirs Oil and Gas Ltd, ND Western Ltd compete to for Shell’s stake in Nigerian oil fields

Heirs Oil and Gas Ltd and ND Western Ltd are competing for Shell’s 30% stake in the joint venture, which manages assets in the Niger Delta and offshore areas.

Bids are due on June 10, 2022. However, Shell, Heirs and ND Western declined to comment, according to Bloomberg.

Four indigenous oil and gas corporations have expressed interest in buying Shell Petroleum Development Company’s (SPDC) multibillion-dollar stake in a joint venture that operates oil fields by submitting bids.

Seplat Energy Plc, Sahara Group Ltd., Heirs Oil and Gas Limited and ND Western Limited submitted the non-binding offers in January.

However, Seplat Energy Plc and Sahara Group Ltd who initially made non-binding offers for Shell’s assets, sources said, are no longer pursuing the transaction.

Recall that Shell had last year, revealed its plan to sell the interest last year, citing the incompatibility of its long-term energy transition strategy with Nigerian operations prone to spills and theft.

Shell’s investment was valued at $2.3 billion by energy expert, Wood Mackenzie Ltd. last year, assuming a long-term oil price of $50 per barrel. However, with Brent selling at about $121, the investment is likely worth much more.