Shell Seeks To Buy Chevron’s Oil Blocks

Royal Dutch Shell Plc , which announced on July 31 that it was putting four of its Niger Delta oil blocks up for sale , decided Thursday to buy some of Chevron’s oil blocks up for grabs . Shell called the purchase of Chevron assets part of its strategic portfolio review that could make it sell onland oil blocks that currently give the company between 80, 000 and 100 ,000 barrels a day of oil equivalent. Simultaneously, it seeks to invest in
swampland and deep offshore where security risks are less . All the five oil blocks put up for sale by
Chevron are in the swamps .
According to NigerianCurrent , International energy companies have been divesting in recent years
because of insecurity of staff and assets in the Niger Delta, pipeline vandalization and oil theft ,
among other problems created by restive youth and criminal gangs which bedevil the oil producing
Reports said Shell’s purchase of swampland from Chevron could signal its exit from long- dormant oil assets in Ogoniland. Strident community opposition to its presence has prevented the
company from producing oil there since the death of the prominent environmental rights activist, Ken
Saro-Wiwa .
Mr Peter Voser , CEO of Shell, said : "We will not leave the onshore completely. In the eastern part,
we will be less represented over time. But it doesn 't mean we go out of onshore."
Shell is selling OML 13, 16, 71 1nd 72 for a total of about $1 billion to $ 1. 5 billion. The oldest JV
partner in the country has already sold off eight oil blocks in the Niger Delta in the past. Chevron' s
fields are better secured and still have plenty of oil in them, an informed source said .

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