Shell targets 50% of new Nigeria oil/gas offering

CAPE TOWN – Royal Dutch/Shell will aggressively bid for new Nigerian oil and gas concessions, targeting about 50 per cent of tenders planned by the government, a senior official said.

“You must have heard that the Nigerian government plans to call a new round of bidding,” Shell’s New Business director for Africa Demola Adeyemi-Bero said at an international oil conference in Cape Town on Wednesday. “Shell would like to be a part of that, holding about 50 per cent,” he said.The Anglo-Dutch company is already Nigeria’s biggest foreign equity producer, accounting for roughly half the Opec member country’s output of some 2,3 million barrels per day.Shell would like to add some 300 000-400 000 bpd to its portfolio from the projected new investment, Adeyemi-Bero said.Despite delays in bringing on stream its 225 000 bpd Bonga deepwater oilfield, Shell’s Nigeria production had been boosted by last year’s start of its EA shallow water field, he said.Bonga was now expected to produce its first oil in the middle of next year after setbacks he attributed to “project delays, including fabrication.”Any investments in planned new government acreage will be a major boost for Shell which this year controversially reviewed downwards its proven reserves in Nigeria from 2,524 billion barrels to 720 million barrels.”We are hinging our projects on the aspirations of the government,” Adeyemi-Bero said.He indicated Shell would be focusing on concessions with massive gas reserves.”The gas market is heating up in Asia.Nigeria has lots of gas and we will be looking at plans to boost our gas programme,” he said.Adeyemi-Bero played down the threat of violence in the Niger Delta region, where most of Nigeria’s crude oil is produced.An ethnic Ijaw rebel group threatened to launch war in the area where local tribes allege they are denied the benefits of Nigeria’s oil wealth.President Olusegun Obasanjo held talks with its leader, who later declared a truce last week.”The government is doing a lot in engaging those concerned,” Adeyemi-Bero said.”These are problems Shell cannot solve.What we do is be good corporate citizens in the area we operate to dampen tensions.”-Nampa-Reuters”Shell would like to be a part of that, holding about 50 per cent,” he said.The Anglo-Dutch company is already Nigeria’s biggest foreign equity producer, accounting for roughly half the Opec member country’s output of some 2,3 million barrels per day.Shell would like to add some 300 000-400 000 bpd to its portfolio from the projected new investment, Adeyemi-Bero said.Despite delays in bringing on stream its 225 000 bpd Bonga deepwater oilfield, Shell’s Nigeria production had been boosted by last year’s start of its EA shallow water field, he said.Bonga was now expected to produce its first oil in the middle of next year after setbacks he attributed to “project delays, including fabrication.”Any investments in planned new government acreage will be a major boost for Shell which this year controversially reviewed downwards its proven reserves in Nigeria from 2,524 billion barrels to 720 million barrels.”We are hinging our projects on the aspirations of the government,” Adeyemi-Bero said.He indicated Shell would be focusing on concessions with massive gas reserves.”The gas market is heating up in Asia.Nigeria has lots of gas and we will be looking at plans to boost our gas programme,” he said.Adeyemi-Bero played down the threat of violence in the Niger Delta region, where most of Nigeria’s crude oil is produced.An ethnic Ijaw rebel group threatened to launch war in the area where local tribes allege they are denied the benefits of Nigeria’s oil wealth.President Olusegun Obasanjo held talks with its leader, who later declared a truce last week.”The government is doing a lot in engaging those concerned,” Adeyemi-Bero said.”These are problems Shell cannot solve.What we do is be good corporate citizens in the area we operate to dampen tensions.”-Nampa-Reuters