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Exclusive: Vitol, Glencore, Shell in running for Petrobras' Nigerian assets

Reuters  |  LONDON 

By Julia Payne

LONDON (Reuters) - The world's three largest are competing to buy the African arm of Brazil's that owns stakes in two Nigerian offshore oil blocks, industry and sources with knowledge of the matter said, after submitting bids earlier this month.

Last November, state-controlled Petroleo Brasileiro SA, known as Petrobras, launched the sale of 100 percent of Oil & Gas BV, or Africa, as part of the heavily-indebted company's plan to offload $21 billion in assets through 2018 as it also faces a massive corruption scandal.

Petrobras holds half the shares in the company while 40 percent are held by a subsidiary of Grupo SA and 10 percent by

Bankers have previously estimated the value of the Petrobras venture to be about $2 billion.

The venture has stakes in two offshore blocks that contain two producing fields, the in OML 127, operated by a local affiliate and the field in OML 130 operated by Total SA.

The sale has attracted the top trading firms which are always on the hunt for long-term crude supplies. and had also its potential.

In early May, three consortiums including the trading companies submitted bids to buy Petrobras Africa.

bid together with the of U.S. firm called Delonex and Canadian-listed Africa Corp, an firm that is part of Sweden's

joined with Nigerian listed firm and French firm that is majority-owned by the Indonesia's firm also backs and owns a 20 percent stake in

The third bidder was privately-held together with

is one of the concessionaires in the operator of the Agbami along with Chevron, and Petrobras. holds the majority stake.

Vitol, Glencore, Shell, Africa declined to comment. Maurel, Famfa and did not respond for requests for comment.

Petrobras is expected to make a decision by the end of May. But the sources said that this could slide as there was a still a possibility that the bids might be split between the two

Agbami produces about 240,000 barrels per day (bpd) while the field in OML 130 produces nearly 130,000 bpd with a second field Egina due to come onstream in the same block later this year.

(Additional reporting by Ron Bousso; editing by Jane Merriman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 16:22 IST