Shell, Other Oil Companies Shift Priority To Clean Energy, Sell Assets to Elumelu Other Nigerian Billionaires

Shell, Other Oil Companies Shift Priority To Clean Energy, Sell Assets to Elumelu Other Nigerian Billionaires

  • More International oil companies are diversifying their assets from the Nigeria oil industry as they take a good look at the clean energy market
  • Shell, Mobil oil are some of the companies looking to say goodbye after years of playing a major role in the Nigerian oil industry
  • The oil companies are selling assets to Nigerian billionaires like Elumelu, who are trying to increase their riches

There is a significant change in the last few months on oil asset ownerships in the country, especially in the upstream sector.

For over 60 years Shell, Exxon Mobil, Chevron, Agip, Texaco and Total, were all synonymous with the Nigeria oil industry but as at Friday, 25 February, the number is now three.

Exxon Mobil Corporation (ExxonMobil) is the latest major oil corporation to exit Nigeria, announcing that it has sold its stake in Mobil Producing Nigeria Unlimited to Seplat, a Nigerian oil business, for $1.3 billion, the Guardian newspaper reports.

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Shell, other big oil companies wave goodbye to Nigeria, as Elumelu, other Nigerian billionaires buy up assets
A tanker arrives at the Esso Fawley Oil Refinery, operated by Exxon Mobil Corp. Credit: Luke MacGregor/Bloomberg via Getty Images
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More oil companies

In 2021, UK-based Royal Dutch Shell quit Nigeria after completing the sale of its assets to TNOG Oil and Gas Ltd while Texaco sold off its assets to Chevron in 2000.

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Chevron is also looking for buyers for its OMLs 86 and 88, which the firm has been trying to get rid off since 2016, but couldn’t find a buyer. The assets are still up for sale after the oil major sold it's OMLs 83 and 85 in 2015.

While Total Nigeria is battling with media suggestions that there are plans to quit Nigeria.

Nigerian billionaires buying the assets

In a report by Ripples Nigeria, Nigerian businessman, Tony Elumelu is the man behind, TNOG Oil and Gas Ltd who bought shell assets in 2021.

The other is Sayyu I. Dantata the half-brother of Africa’s richest person, Aliko Dangote through his company MRS Holdings bought Chevron’s upstream business, OMLs 83 and 85 in 2015.

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ABC Orjiako is the Chairman and co-founder of Seplat the company taking up the assets of ExxonMobil.

Mike Adenuga's oil firm, Conoil Plc, is also mentioned, as it is believed to be leading the bidding process for Chevron's upstream operations, OMLs 86 and 88.

Oil companies take Investments to Libya

Meanwhile, Legit.ng had earlier reported that oil companies are taking their investment to Libya after the country's long-decade of war look over.

The report noted that the oil companies have expressed their desire to invest in Libya, due to the recently found stability.

It was also noted that the international oil companies leaving Nigeria is due to an increase in bunkering and vandalism of oil facilities

Source: Legit.ng

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