BY ONYEGBADUE AMAMDI with agency
The Financial Times, FT, quoting close sources to Shell, reported that the Anglo Dutch oil company planned to divest up to $15 billion worth of assets over the next two years.
In October 2013, Shell announced plans to sell off significant number of assets in 2014 and 2015, in order to reduce liabilities and improve cash flow in its business.
The source said Shell would divest mature upstream assets in the North Sea and elsewhere, more of its refinning portfolio and some projects that have not yet reached final investment decision and “which make sense for others to develop”.
Shell has already announced strategic reviews of its US shale business, which has been losing money, and its Nigerian assets which have been hit by rampant sabotage and oil theft.
It has been suggested by industry analysts and some bankers that Shell may look to sell some of its Nigerian oil blocks, along with its 23.1 percent stake in the Australian production and exploration company Woodside Petroleum, which is estimated to be worth over $6 billion.
Shell has underperformed the European oil and gas sector by six per cent over the past year, dragged down by a string of disappointing quarterly results and concerns about how it allocates capital. It has been criticised for spending too much and not rewarding shareholders enough.