A Review of the Nigerian Energy Industry

Shell to divest $15bn assets in 2 years

Shell 321 January 2014, News Wires – Shell, the Anglo Dutch oil giant is reportedly planning to divest up to $15 billion worth of assets over the next two years.

In October 2013, Shell announced plans to sell off significant number of assets in 2014 and 2015, to reduce liabilities and improve cash flow in its business.

The Financial Times (FT) quoting close sources said Shell would divest mature upstream assets in the North Sea and elsewhere, more of its refinning portfolio and some projects that have not yet reached final investment decision and “which make sense for others to develop”.

Shell has already announced strategic reviews of its US shale business, which has been losing money, and its Nigerian assets which have been hit by rampant sabotage and oil theft.

It has been suggested by industry analysts and some bankers that Shell may look to sell some of its Nigerian oil blocks, along with its 23.1 percent stake in the Australian production and exploration company Woodside Petroleum, which is estimated to be worth over $6 billion.

Shell has underperformed the European oil and gas sector by six per cent over the past year, dragged down by a string of disappointing quarterly results and concerns about how it allocates capital.

The company has also been criticised for spending too much and not rewarding shareholders enough.

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