Mumbai-based Oil India is analysing the possibility of acquiring a stake in Shell’s Nigerian onshore oil assets, which have been placed on the market for a combined offer of $2 billion.
The European oil giant initiated plans recently to commence divestment of its land assets which have been greatly compromised by an increasing spat of oil theft and vandalism, resulting in a loss of more than $1 billion, newspaper sources indicated.
This has alerted local and international onlookers including Seplat, an emerging indigenous oil and gas operator and Dangote Group, a multi-business conglomerate controlled by Africa’s richest man, Aliko Dangote.
More recently, India’s second largest exploration and production public firm has been alert to the availability of the assets, in a bid to strengthen its presence in Africa’s oil industry. A report by Oman Tribune revealed Oil India acquired a 10 percent stake in Mozambique’s gas field, indicating an aggressive approach to expanding its African reach.
India’s rising economic status globally is fuelling a surge in international oil demand, with the Asian country expected to emerge the second largest contributor to world energy demands by 2035, according to a report on energy consumption in India. This could be linked to the oil firm’s push to expand its portfolio of assets to sustain increased local demand.
(via Ventures Africa)
