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Glencore interested in oil assets in Nigeria

Staff writer |
Glencore confirmed its interest in buying oil assets that oil major Shell is selling in Nigeria. Assets that Shell and another two oil majors are selling are worth approximately $3 billion.

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Shell is selling its 30 percent stake in four oil blocks, with France's Total and Italy's Eni also looking to divest their 10 percent and 5 percent stakes. The Nigerian National Petroleum Corporation (NNPC) owns the remaining 55 percent.

Shell is also selling the Nembe Creek oil pipeline, which has been a regular target for oil thieves.

"We are always interested in every assets that comes for sale. We always look at it and check if we can satisfy our returns criteria," Glencore's chief executive Ivan Glasenberg said, when asked about the Nigerian assets at a presentation of results.

Together with Macquarie Group Glencore had also tried to buy Shell's downstream Australian assets, which were then sold to oil trader Vitol VITOLV.UL and the Abu Dhabi Investment Council for about A$2.4 billion ($2.2 billion) last month.

"It's no secret we were looking at Shell's disposal in Australia but we couldn't compete. The number they bought at did not meet our return," Glasenberg said.

Among other assets Glencore would look at is BHP Billiton's Nickel West business in Australia, which Glencore said has some synergies with its own nickel operations in the area.


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