Shell Traded Nigeria Exit for Fresh Oil Investment

Shell secured the Nigerian government’s approval of a major asset sale in the country by committing to a fresh large-scale investment in the Bonga North field, the Financial Times reported today, citing unnamed sources familiar with both deals. The Anglo-Dutch supermajor approved the Bong North deepwater project at the start of this week, with reports putting the total investment in the field at some $5 billion.

4 billion to Renaissance Group but the Nigerian government was against the deal. Now, the FT sources are claiming that the approval of the Renaissance Group deal was contingent on the final investment decision for the Bonga North project. According to one of the sources, however, the Nigerian government wanted more than just one final investment decision. Rather, they want to make sure Shell will remain in Nigeria as an investor, even after it sells some of its assets there.

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Shell Links Onshore Asset Sale to $5bn Deepwater Investment in NigeriaShell has linked the approval of its controversial onshore asset sale in the Niger Delta to a $5bn investment in deepwater oil projects off the coast of Nigeria. The Anglo-Dutch company's decision to invest in the Bonga North project comes after the Nigerian government approved Shell's $1.3bn sale of onshore oil assets to Renaissance Africa Energy. The deal faced significant obstacles, including concerns over environmental damage. Shell emphasized its desire to continue investing in Nigeria's deepwater oil and LNG sectors, but also highlighted the need to exit its onshore assets due to their long history of environmental issues and community tensions.
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