Africa’s Richest Man Bids For Shell Nigerian Asset

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Aliko Dangote photo

Aliko Dangote

AFRICANGLOBE – Africa’s richest man, Aliko Dangote, is planning to acquire a stake in a Nigerian gas field owned by Anglo-Dutch multinational energy giant Shell.

According to a report by Africa Intelligence, Dangote Industries submitted the highest bid for Shell’s stake in Oil Mining Lease (OML) 18 at an auction organized last year in the Niger Delta region. The financial details of the bid and the exact stake Dangote is looking to acquire are undisclosed.

Shell is currently the operator of the Alakiri Creek plant on the OML 18 field. The Alakiri Creek plant processes 80 million standard cubic feet per day (MMpc/d), but has the potential to rise to 120 million square feet per day (mmsf/d). The OML 18 field is said to have reserves of close to 1.5 billion barrel of oil equivalent (BOE) of gas.

This is not the first time Dangote would make an attempt to acquire an asset owned by the Dutch oil major. In 2010 Dangote put in a bid for Shell’s 45% stake on OML 30, but lost his bid to Conoil Producing, an exploration company owned by billionaire Mike Adenuga.

The Nigerian Petroleum Development Company (NPDC), the exploration and production subsidiary of the Nigerian government-owned oil company would later cancel the sale of the stake to Adenuga and sell it to London-listed Heritage Oil PLC. Shell has recently been divesting from some of its key Nigerian assets in the wake of crude oil theft and weak refining margins.

Dangote, who made his $24 billion fortune trading cement, sugar and flour, has recently ramped up his efforts to boost his investments in Nigeria’s booming oil sector. While his largest and most publicized investment in the energy sector is a planned $9 billion private oil refinery in Nigeria, Dangote also owns minority stakes in a handful of oil exploration concerns, including a 9% stake in block 1 in the Joint Development Zone between Nigeria and Sao Tome, where Chevron is the operator. He also owns a 10% stake of block 3 in the JDZ.

 

By: Mfonobong Nsehe

Africa’s Richest Man, Aliko Dangote

  • https://www.facebook.com/Amenhotep4th Sidy Mohamed Gueye

    That is the question that anybody should be asking.
    How did he acquire all this wealth?

  • https://www.facebook.com/phemelo.sediti Phemelo Sediti

    this wealth?

  • https://www.facebook.com/phemelo.sediti Phemelo Sediti

    How did Dangote acquire all

  • https://www.facebook.com/c.s.blissett Chris Kalika Blissett

    How does a foreign company get to own one of Africa’s largest assets then get the right to sell it back to them. Before I buy shit I determine if you acquired the asset legally. Momma and two degrees didn’t raise no fool.

  • https://www.facebook.com/kenneth.sourie Kenneth Sourie

    Well Done!

  • https://www.facebook.com/kofi.kukubor Kofi B. Kukubor

    On point

  • https://www.facebook.com/robin.cole.58 Robin Cole

    Get it Brother! West Africa in the house! <3 He know we're all related!

  • https://www.facebook.com/dewey.boyd Dewey Boyd

    We need hundreds more,like Dangote