Shell completes local sale of oil mining lease

Shell Oil

Shell Oil

from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – THE Shell Petroleum Development Company of Nigeria Limited (SPDC) has completed the assignment of its 30 percent interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta.

Its interests in OML18 were assigned to Eroton Exploration & Production Company Limited. Total cash proceeds for Shell amount to $737 million.

This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.

The company said it had been in Nigeria for more than 50 years and remains committed to keeping a long-term presence there – both onshore and offshore.

Through SPDC and its other Nigerian companies, Shell responsibly produces the oil and gas needed to help fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians, read a statement.

OML18 covers an area of 1,035 square kilometres and includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities.

The divested infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML.

The divested fields produced on average around 14 000 barrels of oil equivalent per day during 2014.

Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10 percent and 5 percent respectively in the lease, ultimately giving Eroton Consortium a 45 percent interest in OML18.

All approvals have been received from the relevant authorities of the Federal Government of Nigeria.

– CAJ News

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Posted by on Mar 20 2015. Filed under Energy, Featured, Finance, Finance & Banking, Oil & Gas. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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