Seven Energy Ltd., a Nigerian oil and gas company, is bidding for Royal Dutch Shell Plc’s production licence OML 34 in the African country, shareholder Petrofac Ltd. said.
Petrofac, a U.K. oil services company that holds a 15 percent stake in Seven, may help finance the bid, said Chief Executive Officer Ayman Asfari. Shell is expected to make the tender announcement in a few weeks, he said.
“If they are successful they would have to raise additional funding” and “we may support them and may end up increasing our shareholding,” Asfari said in an interview today. “Our interest in Nigeria is whether they succeed in the Shell round or not.”
London-based Petrofac plans to expand in West Africa after securing its first joint project in Nigeria. Shell, which agreed last year to sell four Nigerian offshore fields out of a total of 34 blocks it holds in the country, has attracted bids from companies including Essar Group and Afren Plc.
“The blocks sold and for sale represent less than 10 percent of our production” in Nigeria, Shell Chief Financial Officer Simon Henry said Feb. 3. “So we’re really reducing the footprint, increasing indigenous participation.”