Nigeria's oil Minister, Rilwanu Lukman
The Nigerian government is in talks with Chevron Corp. (CVX) and Royal Dutch Shell PLC (RDSA) over the renewal of their shallow-water oil licenses, an official statement has said..
“Chevron and Shell are still in negotiations with the Federal Government over the renewal of their expired licenses,” a statement by the ministry of petroleum resources quoted Junior Oil Minister Odein Ajumogobia as saying.
The statement countered media reports that the renewal of the licenses was stalled due to the absence of President Umaru Yar’Adua.
“The minister of petroleum resources has the full authority under extant laws to renew leases and licenses,” the statement said. It said no specific authorization from the presidency was required.
In May 2008, the state-run Nigerian National Petroleum Corporation signed an oil-financing deal worth $2 billion with Mobil Producing Nigeria, a unit of Exxon Mobil Corp. (XOM).
The same month, the Nigerian state-run company signed a similar deal worth $1 billion with Elf Petroleum Nigeria Limited.
Oil Minister, Rilwanu Lukman.
In another developmet, energy officials in Abuja kicked off a summit with the British government to build the capacity of the Nigeria oil sector, the Nigerian oil minister said.
Rilwanu Lukman, the Nigerian oil minister, said bilateral energy cooperation with London would “go a long way to accelerate and sustain the success of the transformation process.”
British exports to Nigeria in 2009 passed $2 billion, with oil exports making up $325 million of that total.
Lukman said the British experience with privatization could provide a solid working model for reforms in the Nigerian energy sector, Nigeria’s Next news agency has reported.
Chevron! new negotiation.
Several international oil producers announced major finds in the oil-rich Niger Delta region. Resurgent militant activity in the Niger Delta, however, threatens to derail an October cease-fire that brought optimism to the oil sector.
Last month, reports emerged that Royal Dutch Shell was planning to sell £3bn of onshore oilfields in Nigeria.
Rilwanu Lukman, minister of petroleum however denied any knowledge of such sale process,
According to the Minister, any move would require Shell to win government approval. “It’s not theirs to sell,” he said. “They’re holding concessions given [to] them by the government.”
Western oil majors operating in Nigeria are known to have concerns about the African nation’s proposed deregulation of the sector and it i that ew laws will impose tougher tax conditions on foreign oil groups.
“Keeping the offshore whilst selling onshore assets is difficult enough, but bidding for new concessions and maintaining good relations with the government at the same time will be no easy task,” said Malcolm Graham-Wood, director of oil and gas broking at Westhouse. “However, the idea has considerable merits and would give Shell a chance to broaden its portfolio.”
Shell has been operating in Nigeria for 70 years, but onshore production has been repeatedly disrupted by rebel groups.
Violence in the region has calmed following a ceasefire earlier this year and an agreement giving the government more power over oilfields.
Shell logo, a ew era of exploration.
Shell has been focusing on developing new gas reserves in recent months and any move to shift its focus away from its African heartland would suggest a further move in that direction. Licenses for 16 oil and gas fields in Nigeria, including ones operated by Shell and Chevron, are up for renewal.
Shell has declined to comment since reports first emerged about the potential
Talks with oil producers on extended contracts are overshadowed, meanwhile, by lingering health concerns for the Nigerian president and renewed security issues stemming from a failed Christmas Day bombing of a U.S. passenger jet blamed on a Nigerian national.
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