Shell may sell assets to CNOOC

THE HAGUE, Netherlands, Nov. 26 (UPI) -- Anglo-Dutch giant Shell may sell its firms in Africa to China National Offshore Oil Corp.

London's Sunday Times reported that the company may be considering selling its stakes in two offshore Nigerian oil and gas projects to state-run CNOOC. The deal could be worth about $900 million.

Shell holds a 49.8 percent stake in each of the projects. Analysts said CNOOC is likely to view the operations as prize assets as the Chinese group seeks to expand its interests in Africa aggressively.

The potential deal demonstrates that Shell is prepared to tackle its problems in Nigeria, where its interests in the Niger Delta region have been attacked by militants.

It has also been hit by shortfalls in Nigerian government funding for joint ventures and fears that profits could be cut if the government decides to increase its share from the contracts.

Last week Shell announced it was reorganizing its Nigerian operations through a merger of divisions. This latest deal comes after CNOOC was recently linked to the possible acquisition of Shell's interests in Australia's North West Shelf oil and gas project.