Nigerians take stake in oil development

Nov. 6, 2012 at 8:12 AM

ABUJA, Nigeria, Nov. 6 (UPI) -- Nigerian energy companies were given "favorable terms" in a divestment strategy by energy majors like Shell, a local managing director said.

Pade Durotoye, chief executive officer of Nigeria's Oando Energy Resources Ltd., said international oil companies were selling assets in the country through deals with indigenous entities like his.

"Favorable terms granted to local companies will make previously non-profitable projects profitable," he was quoted by Nigerian newspaper This Day as saying.

Durotoye said local companies were given benefits on royalties to the government based on production.

The Nigerian newspaper reported that Royal Dutch Shell, Total and Italian energy company Eni pulled in more than $2.5 billion in sales of Nigerian oil blocks during the last two years.

The report said those companies dumped some of the assets in response to a militant campaign waged by guerrilla organizations in the Niger Delta 2007-09.

Nigeria is among the top oil exporters in the region. Flooding last month in states in the oil-rich Niger Delta prompted Shell and French supermajor Total to declare force majeure on exports from Nigeria.

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