By Ikenna Omeje

Nigeria is the largest crude oil producer in Africa with over 37 billion proven oil reserves and over 206 Trillion Cubic Feet (TCF) of proven gas reserves. The discovery of oil in Nigeria dates back to 1956 when Shell-BP discovered oil at Oloibiri in the present day Bayelsa State.
The country became a key oil producer in 1958 when its first oil field came on stream producing 5,100 bpd. After 1960, exploration rights in onshore and offshore areas adjoining the Niger Delta were extended to other foreign companies. In 1965 the EA field was discovered by Shell in shallow water southeast of Warri, Delta State.
Although Nigeria has been in the business of crude oil exploration and production for more than half a century, the country did not mainstream indigenous capacity until 2010 when it enacted the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. Before then, International Oil Companies (IOCs) like Shell Nigeria, Nigeria Agip Oil Company (NAOC), ExxonMobil, Chevron, TotalEnergies, among others, were mainly the players in the Nigerian oil and gas industry.

The enactment of NOGICD Act gave birth to indigenous oil and gas companies like Seplat Energy, ND Western, Eroton E&P, Aiteo E&P, among others. These companies have shown their capacity and continue to prove that Nigerian companies have what it takes to run the country’s oil and gas industry. And with the IOCs exiting from onshore and shallow-water exploration and production, divesting, and open to selling more of their assets, these indigenous companies are stepping in to take over these assets.
The process of oil and gas exploration and production in less than 150 meters (500 feet) of water, is known as Shallow water drilling. According to Drillers.com, “Not too long ago, shallow water would be described as up to 300-400 feet (91-121 meters) deep, but nowadays anything under 1000 feet (305 meters) could be described as shallow water.”
IOCs’ Exit
In May 2021, the CEO of Shell Plc, Ben van Beurden, at the company’s annual general meeting, hinted the company’s plan to exit from its onshore oil and gas operations in Nigeria.

Although Nigeria has been in the business of crude oil exploration and production for more than half a century, the country did not mainstream indigenous capacity until 2010 when it enacted the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

“When law and order breaks down, when sabotage and theft is rife where you try to operate, no amount of effort that we put in can actually try to compensate for that,” Argusmedia quoted him as saying.

Ben van Beurden

“At some point in time, we also have to conclude that this is an exposure that does not fit with our risk appetite anymore. We have drawn that conclusion, and we are now talking to the Nigerian government on the way forward”.
Even though the Nigerian Government wants Shell to continue to operate its onshore assets, it seems the company has made up its mind to focus on offshore exploration and production. The Minister of State for Petroleum Resources, Chief Timipre Sylva, confirmed in May 2021 that the country is in talks with Shell over the planned divestment of its onshore assets.
“Nigeria is in its talks with Shell include handing over Shell’s stakes in the assets to the Nigerian Petroleum Development Co. (Company), the upstream arm of state oil firm Nigerian National Petroleum Co., or NNPC, inviting bids from Nigerian indigenous producers, or having a mixture of local firms and foreign independent producers to bid for the assets,” Sylva had told journalists in Abuja.
Meanwhile, four independent oil and gas producing companies in January submitted non-binding bids for Shell Plc onshore assets. The companies are Seplat Energy Plc, Sahara Group Ltd., Heirs Oil and Gas Ltd., and ND Western Ltd.
According to Bloomberg, based on the early March 2021 crude oil price of plus $90, Shell could realise as much as $4 billion from its 30 percent operating interest from the onshore assets. Other companies who are part of the joint venture include Nigerian National Petroleum Co., TotalEnergies SE and Eni SpA, with 55 percent, 10 percent, and 5 percent stakes, respectively.
In the last 11 years, Shell has sold its stake in most of its onshore assets. Having been in the business of oil and gas exploration and production in Nigeria for the past 50 years, Shell has faced several legal battle from various host communities, acusing the company of negligence and environmental pollution. This is making the business environment challenging, which has necessitated the exit.
Also in late February, Seplat Energy announced that it has entered into a Sale and Purchase Agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited (MPNU) for a purchase price of $1,283 million-plus up to $300 million contingent consideration, subject to lockbox, working capital and other adjustments at closing relative to the effective date.
In a statement, Seplat said that the transaction cut across the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria, which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids)

Chief Timipre Sylva

The MPNU portfolio primarily consists of a 40 percent operating ownership of four oil mining leases (OMLs 67, 68, 70, 104) and associated infrastructure (NNPC is the 60% partner); the Qua Iboe Terminal; one of Nigeria’s largest export facilities; and 51 percent interest in Bonny River Terminal and Natural Gas Liquids Recovery Plants at EAP and Oso.
The transaction does not include ExxonMobil’s deepwater assets in Nigeria. Seplat noted the MPNU will operate as a stand-alone subsidiary of Seplat Energy and upon closing and following receipt of requisite regulatory approvals, it will align MPNU with its overall strategic goals and ESG objectives
“This is a transformational acquisition for Seplat Energy that strengthens our partnership with the national oil company, the NNPC, and consummates the spirit of the newly enacted PIA.
“As a significantly larger business, with a stronger resource base and greatly enhanced capabilities, we will be better positioned to provide sustainable energy solutions that drive growth and profitability for the benefit of all our stakeholders, particularly our host communities and the wider Nigerian economy.
“We fully support the aims of the Federal Government’s “Decade of Gas”, and this acquisition will accelerate our development of Nigeria’s gas resources to help achieve a just transition for our rapidly growing country,” said the former Chairman of Seplat Energy, Dr. ABC Orjiako on the plan acquisition.
On his part, CEO of Seplat Energy, Roger Brown said: “This transaction underpins Seplat Energy’s drive to be a leader in the growth of the indigenous independent energy sector in Nigeria.
“The acquisition is a perfect fit with our strategy to build a sustainable business and deliver energy transition in Nigeria. Our financial strength has enabled us to attract high-quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation.
“We are determined to drive our growth through the extensive low-cost and low-risk production opportunities it delivers in the near term, whilst also developing longer-term opportunities to monetise our significant gas resources through domestic and export opportunities.
“This is a win-win for both companies. Together, we will strengthen our focus on profitability and cash generation to reinvest in Nigeria’s energy development.
“MPNU’s employees and contractors have a strong reputation for safety and operational excellence, and I look forward to welcoming them to the Seplat Energy family.”
Insecurity around land, swamp, and shallow water assets has been a major concern for IOCs, which is why they are exiting the terrain to focus on deepwater exploration and production.
Although shallow-water rigs have legs that reach the bottom of the seafloor and have blowout preventers (BOPs) above the surface of the water that are accessible for inspection, maintenance and repair, and can be controlled either remotely or manually in case of an emergency, IOCs are exiting mainly because of community hostilities against their operations and security concerns.

This is a transformational acquisition for Seplat Energy that strengthens our partnership with the national oil company, the NNPC, and consummates the spirit of the newly enacted PIA.

Basil Omiyi

Toeing the line, TotalEnergies SE in May, formally launched the sale of its 10 percent stake in its Nigerian joint venture with NNPC Limited, Shell Petroleum Development Company (SDPC) and Eni.
Reuters reports that a sale document tendering for interest showed that the oil firm appointed Canada’s Scotiabank as the financial adviser for the transaction.
According to Reuters, the company will be selling its interest in 13 onshore fields and 3 in shallow water, with combined production of over 20,000 barrels of oil equivalent per day. The French oil giant will, however, keep OMLs 23 and 28 and its interest in the associated gas pipeline network that feeds Nigeria LNG.

Brief Background of Bidders for Shell’s Assets

When some IOCs divested some of their assets to indigenous oil and gas companies, there was palpable fear among stakeholders that it was going to be mission impossible. The notion then was that these companies did not have the technical know-how, the expertise, and the financial resources to man the divested assets. All that has been demystified by Seplat, ND Western, Eroton, Aiteo, among others who today have become key players in the industry.

Our financial strength has enabled us to attract high-quality local and international capital providers to fund this transaction without diluting our existing shareholders and reflects our deliberate approach to capital allocation.

For instance, at the time of acquisition, Seplat’s gross operated liquids production at Oil Mining Leases (OMLs) 4, 38 and 41 were 14,000 bopd. But the company, through the implementation of a focused re-development work programme and drilling campaign grew this to a peak rate of over 84,000 bopd, representing a six-fold increase and significantly ahead of the peak rate achieved by the previous operator of approximately 56,000 bopd in 1996.
The company, which is listed on both the Nigerian Stock Exchange (NSE) and the London Stock Exchange (LSE), also accounts for about 30 percent of gas used by power-generating companies in Nigeria.
Similarly, ND Western Limited, which is one of the fastest-growing exploration and production indigenous companies in Nigeria, is an independent Nigerian oil and gas exploration and production company incorporated on April 20, 2011 as a Special Purpose Vehicle to acquire the jointly held 45 percent participating interest of The Shell Petroleum Development Company of Nigeria, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited in Oil Mining Lease (OML) 34. ND Western is now the holder of a 45 percent Participating Interest in OML 34, in an un-incorporated JV with Nigerian Petroleum Development Company Limited (NPDC) that holds the remaining 55 percent interest previously held by its parent entity, the Nigerian National Petroleum Corporation. NPDC is the Operator of the Asset. According to the company, its primary objective for the acquisition of the asset is to maximise the commercial and economic value of the full spectrum of the resources in OML 34 to include growth in oil, gas, condensate, and NGLs production.
Just like Seplat and ND Western, Heirs Oil & Gas is Africa’s largest, Nigerian oil and gas company, led by a board and management team with significant regional and global experience in production, exploration, and value creation in the resources sector.
In February 2021, Heirs Oil and Gas expanded its portfolios by making an investment of over $1billion in the acquisition of the strategic OML 17 from Shell, ENI, and Total. The investment has been described by various analysts as a very positive affirmation of confidence it has in the robustness of the Nigerian economy. Heirs Oil and Gas is the sole operator of OML 17.
For Sahara, it is a leading energy company in Africa. Its upstream division is one of Africa’s leading independent E&P players with a diverse portfolio of 8 oil & gas assets in prolific basins across Africa and a production capacity of at least 10,000 bopd with plans to boost production to at least 100,000 bopd over the next 5 years. Its assets in Nigeria include OML 18, OML 40, OML 148, OML 228, OML 284, OPL 286

Gas Development

Nigerian independents are playing key roles in the gas space. Gas is seen as the energy of the future and Nigerian government is doing everything to make gas a dominant energy source in the country. In 2020, the Minister of State for Petroleum Resources Chief Timipre Sylva, declared the year as the Year of Gas. This was followed by the Decade of Gas (2021-2030), which President Muhammadu Buhari declared in 2021. The initiative is aimed at making Nigeria a gas powered economy by 2030.
Indigenous E&P companies like Seplat, ND Western, Niger Delta Exploration and Production (NDEP), Eroton E&P, Platform Petroleum, Aiteo, First E&P, Waltersmith Petroman, among others, account for a significant percentage of the gas produced in the country.
“For Platform, we’re acting quite responsibly. We’re one of the smallest assets in the marginal field’s basket in 2003/2004. But we’ve been able to grow with no more than 2,000 barrels in oil production. It’s only now that we’re doing 3,000 – 2,500. We’ve been able to do quite a whole lot. We’re also fortunate that we’re able to commercialise our entire gas. Two – three years ago, we were paying penalities for flaring gas. But we can tell you that in the next two months, we’ll have zero flare. So we’ve been able to commercialise our entire gas — everything,” said the Chairman, Platform Petroleum Limited, Mr. Dumo Lulu-Briggs on the margins of the 2022 Offshore Technology Conference (OTC) in Houston, Texas, United States.

Mr. Dumo Lulu-Briggs

“We’ve tried as a small indigenous company and we also expect support for running our affairs quite prudently, for having a robust arrangement with our host community. We’ve never had any issue with our host community from the first day we began our activities till date. There has not been any

But the company, through the implementation of a focused re-development work programme and drilling campaign grew this to a peak rate of over 84,000 bopd, representing a six-fold increase and significantly ahead of the peak rate achieved by the previous operator of approximately 56,000 bopd in 1996.

downtime as a result of differences we’ve had. There has not been any such thing. So these are some of the things we expect that sometimes the government can look into and decide that look, ‘we need to pat these companies on the back by giving them more opportunities’. So Platform truly qualifies for these opportunities from that very small asset.
“We didn’t even think that we’ll be able to do about 7 million barrels of crude till date, but in the last 15 years, we’ve done about 11 million barrels. And right now we’re producing 30,000MMscfd and all of that is being pushed into the local market.”
Since its acquisition of OML 17, Heirs Oil & Gas has more than doubled the gas production capacity of OML-17 from 50 to 120 mmscfd within the short period the company has operated this asset. According to the company, all this gas goes into the eastern Nigeria domestic gas market to enhance power generation and create the much-needed feedstock for gas-based industries, sustaining & creating jobs and improving lives.
“Decades of underinvestment in the asset cannot be corrected in a few months, since taking over the asset, we have been working arduously on this objective with the execution of flare reduction projects such as follows: AGG (Associated Gas Gathering) compressor uptime improvement, Facility upgrades, provision of gas gathering solutions and Facility off-gas utilisation initiatives,” stated the Chief Executive Officer of Heirs Oil & Gas, Osa Igiehon, recently.

Osa Igiehon

As of January 2022, Nigeria’s gas reserves stood at approximately 209 Trillion cubic feet (Tcf), according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The growth of gas reserves is a critical factor to achieving the Federal Government’s Decade of Gas initiative. The current global push towards low carbon energy presents the country with an opportunity to harness its huge gas reserves, industry experts say. They note that gas will become the dominant fuel for generating power, especially in Africa and Asia, and the country needs to position itself to take advantage of this opportunity.
“The AKK (Ajaokuta-Kaduna-Kano) gas project, when completed, will boost the agricultural and manufacturing sectors, carbon footprint as part of measures to reduce global warming and provide gas for power generation and gas-based industries,” said the Chairman and Group Chief Executive Officer, Oilserv Group, Engr Emeka Okwuosa, on margins of the 2022 OTC.
“The project is important for Nigeria because the gas is what will help Nigeria to develop. Development cannot happen without energy and our largest form of energy in terms of availability is gas.”
As a result of the enormous opportunities that exist in the exploration and production space, more Nigerians want to play in this aspect of the oil and gas industry. On June 1, 2020, the defunct Department of Petroleum Resources (DPR) flagged off another bid round after about 17 years from the last bid round, offering a total of 57 fields located on land, swamp and shallow offshore terrains.

Engr Emeka Okwuosa

A total of 591 firms submitted expression of interest forms, out of which 540 were pre-qualified, while 482 were bids submitted by 405 applicants. In mid 2021, DPR announced 161 companies as successful bidders. Some of the successful companies awarded letters, included: Matrix Energy, AA Rano, Andova Plc, Duport Midstream, Genesis Technical, Twin Summit, Bono Energy, Deep Offshore Integrated, Oodua Oil, MRS and Petrogas.

ND Western is now the holder of a 45 percent Participating Interest in OML 34, in an un-incorporated JV with Nigerian Petroleum Development Company Limited (NPDC) that holds the remaining 55 percent interest previously held by its parent entity, the Nigerian National Petroleum Corporation.

Others are: North Oils and Gas, Pierport, Metropole, Pioneer Global, Shepherd Hill, Akata, NIPCO, Aida, YY Connect, Accord Oil, Pathway Oil, Tempo Oil and Virgin Forest, among others.

NUPRC Awards Licences

In June, NUPRC, the country’s upstream regulator, awarded Petroleum Prospecting Licences (PPLs) to the 161 successful 2020 marginal fields awardees.
Some of the companies issued with licences include Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd. and Sigmund Oil Field Ltd.
Other successful companies are Shafa Exploration and Production Company Ltd., Emadeb Energy Ltd., Zigma Ltd., Inland Basin Ltd. and Petraco Oil Ltd., among others.
Out of the 57 fields, 41 were fully paid for, while 37 fields were issued with the PPL having satisfied all conditions for award.
“The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021,” said Minister of State for Petroleum Resources, Sylva.
“As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.
“It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.
“The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations.”
The Federal Government made about N200 billion from the 57 oilfields, plus an additional $7 million in signature bonuses and others.
The NUPRC Chief Executive, Engr. Gbenga Komolafe, said that the marginal fields award initiative, which began in 1999, was borne “out of the need to entrench the indigenisation policy of Government in the Upstream sector of the oil and gas industry and build local content capacity.”

Engr Gbenga Komolafe

According to him,“Since its inception, a total of thirty (30) fields have been awarded, with seventeen (17) currently producing. A breakdown of the allocation of the fields to indigenous operators is as follows: two (2) fields awarded in 1999, twenty-four (24) in 2003/2004, one (1) each in 2006 and 2007, and two (2) in 2010. Ten (10) years later, in 2020, fifty-seven (57) fields were put up for bidding.”
With the recent issuance of licence to successful companies in the 2020 marginal field bid round by the Commission, industry experts say that the focus should be on increasing the country’s crude crude oil production as well as gas. But the operators need to be incentivized by the Federal Government. Some of the things that will encourage optimal production include addressing the issues of insecurity, unavailability of the infrastructure required to control gas flaring; creating market for domestic gas products; and making gas price attractive for investors.

Challenges

Most of the assets up for divestment by both Shell and ExxonMobil may take time to bring them to their full production capacity. Also, insecurity has been a major concern for indigenous exploration and production companies in Nigeria.
Vandalisation of flow lines and the export line occur mainly because they are easy to access by vandals, with the operators at a point, experiencing losses in excess of 30 percent. As of 2019, indigenous producers accounted for about 21/22 percent of daily crude oil production in Nigeria. The aspiration at a time by the NNPC was for indigenous producers to contribute 30 percent of the total daily production.

Two – three years ago, we were paying penalities for flaring gas. But we can tell you that in the next two months, we’ll have zero flare.

“Security is a great challenge for all the indigenous operators. Anybody within the swamp or land region is susceptible to security challenges. You have vandalization of flow lines and the export line because it is easily accessible. At a time, we experienced losses in excess of 30 percent, but now ranges between 20 and 30 percent of our daily production. In value terms, we were losing about 20,000 barrels of crude a day. Some operators produce as much as 20,000 barrels per day and that is a viable business for them. If you are losing 20,000 barrels of crude per day, it severely impacts your cash flow and the return on your investment. So, if the Government is able to fix the security along the export lines, we will be able

to realize our full production potential and that will bring significant returns to the business and Nation,” said the Managing Director/Chief Executive Officer of Eroton Exploration and Production Company, Ebiaho Emafo on the margins of the 2019 Nigeria Oil and Gas Conference and Exhibition in Abuja.

Ebiaho Emafo

He added, “In the area of gas, the government needs to create infrastructure to transport the gas that we produce to the areas of utilization so we can have bankable opportunities where we are able to sell our gas and make returns on our gas investment. At the moment, we are restricted in terms of ability to sell our gas in terms of limited infrastructure and that is across board.
“Again, security poses another challenge, as there are frequent shutdowns of the export line which occurs because of the oil spills that come as a result of the intrusions on the line by vandals. Sometimes, when the line is down, we are not able to produce neither oil nor associated gas. This year we have lost about 24/25 days of production because of sabotage on the export line. In addition, we have the attendant environmental challenges that come as a result of the pollution caused by the acts of sabotage and vandalization on the pipelines. Statistics show that most of the leakages and spills are as a result of vandalism and or illegal bunkering. This could naturally invoke a sense of aggrievement amongst the host communities who are unfortunately saddled with the negative effects of the pollution caused by vandals which could create a difficult environment for us as business to operate in. We have however worked closely with our Communities to ensure that issues like this remain contained as we continue to enjoy a good working relationship with them.”
Apart from the issues around vandalism and oil theft, there is also the challenge of access to credit. Investment in the exploration and production of oil and gas is capital intensive, and there are not many financial options for indigenous firms locally. On the international scale, it is a bit difficult to secure a credit facility without a big guarantor, like the Federal Government, who will stand by the company seeking facility. The current global push towards reduction of demand for oil and gas and the massive shrinkage of funding could portend high risks for Nigerian exploration and production players like Seplat Energy, ND Western, Sahara Group, Heirs Oil and Gas, among others.
However, speaking with Majorwaves on the margins of 2019 Nigerian Oil and Gas Conference and Exhibition, on the challenges of indigenous E&P companies in this regard, the Head, Energy Covering Downstream and International Oil Trading within Corporate Banking Directorate, First Bank of Nigeria, Oluwatoyin Aina, admonished local E&P companies in the country to look outside of Nigeria while seeking credit facility to fund their projects, like targeting African Finance Corporation (AFC) and International Finance Corporation (IFC) for fund. But with the trend in favour of greener energy, access to credit from big lenders will be a big challenge.
She said,” Hedging is a major requirement for most Reserve Based Lending financing as it provides a buffer to falling prices. Commercial banks generally are not positioned to take exploration risk due to the nature of our foreign currency capital which isn’t long term. Our long term financing are usually in local currency. For foreign currencies, banks borrow the funds at an expensive cost and the tenure is usually short.”
Many big lenders in Europe and the United States are taking steps to stop funding investment in fossil fuel, while others have announced plans to reduce the environmental impact of their financing activities by engaging with clients in fossil fuel-intensive sectors to lower their carbon footprints or stop the financing of certain sectors entirely.
Another big challenge is community hostilities towards oil companies. However, the granting of 3 percent allocation from the actual annual operating expenditure of oil companies as contained in the Petroleum Industry Act (PIA) may be a panacea.
Analysts believe that the provision for host communities’ development trusts in the PIA will foster sustainable prosperity, enhance peace, and cordial relationship between licensees and lessees, and the communities.

Oluwatoyin Aina

Decades of underinvestment in the asset cannot be corrected in a few months

Pushing Forward
With the current happenings, it appears most of the IOCs may leave the country. But what is more interesting is how Nigerian independents are positioning themselves to take over from them when they exit.
Nigerian independents, despite all the challenges they are faced with, have been very resilient, and keep trudging forward. They are not just succeeding in Nigeria, they are also expanding to other oil-rich African countries.
Asharami Energy Limited, the upstream subsidiary of Sahara Group, has made huge investments in three prolific onshore assets in Nigeria. The company has a diversified portfolio of onshore assets across the exploration, development and production stages with a large acreage located within a prolific and proven oil basin. It has assets in Nigeria, Ghana and Ivory coast.
In 2019, First E &P was awarded Block 2, one of the three blocks available for bid in Ghana’s keenly contested first licencing round, making the company the fifth Nigerian oil and gas exploration and production companies operating in Ghana. Other four are Amni, Oranto, Brittania-U and Sahara. With the inclusion of Madu field in OML 85 in its development, First E&P expects to achieve a 60,000 bopd production height in its operation this year.
Innoson Oil & Gas Limited, announced in May that it has discovered gross prospective recoverable resources of 8.2 Tcf and 234 MMbbl of gas and condensate respectively, in its asset, offshore Sierra Leone.
The company was awarded nine graticular provisional blocks in May 2020. The following year, the parliament of Sierra Leone ratified a petroleum exploration and production license in favor of IOG as confirmed in a letter of conveyance to IOG in April 2021.
“The development opportunity is currently being appraised. Asset evaluation, a field development plan, and the setup of a data room are vigorously pursued with the immediate objective to engage a farm-in partner; ideally, with the financial strength, technological and management competencies to accomplish joint discovery, development, and production.
“IOG has a 100 percent working interest on the prospect with a 10% carried, plus an optional 5% paid interest(s) for the state of Sierra Leone. Attractive fiscal and tax regimes by the state of Sierra Leone offer a flexible so robust environment for a big take,” the company said in a statement.
Nigerian independents are not only playing actively in Nigerian exploration and production space, they are also playing in other countries in Africa. With this drive, these companies are gradually shaping up as IOCs.
As Shell evaluates the non-binding bids to see which parties to take to the next round, stakeholders are expectant that the deal will be beneficial to both Shell and the interested bidders. According to Bloomberg’s sources, although deliberations are ongoing, no final agreements have been reached and Shell may decide not to sell the assets.

The growth of gas reserves is a critical factor to achieving the Federal Government’s Decade of Gas initiative.