₦airaland Forum

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THE HAGUE, The Netherlands, March 20, 2015 /PRNewswire/ --

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B), has completed the assignment of its 30% 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.

Shell has 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.

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 (100%) during 2014.

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

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

Notes to editors:

SPDC is the operator of a joint venture between the Nigerian National Petroleum Corporation (55%), SPDC (30%), Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%).

http://www.prnewswire.com/news-releases/spdc-completes-sale-of-oil-mining-lease-18-in-nigeria-496985091.html

Guess they tired of recurrent cases of vandalism and kidnaps.

Well so many factors, vandalism, illegal bunkering, community issues, low production and high cost of running these facilities especially with drop in oil price, political instability etc

simplemach:
Guess they tired of recurrent cases of vandalism and kidnaps.

securi:
Well so many factors, vandalism, illegal bunkering, community issues, low production and high cost of running these facilities especially with drop in oil price, political instability etc

they took a good step afterall.

Of course, considering the production from the OML over the years and the cash proceed from the sale. It must be a big WIN for the Company

simplemach:
they took a good step afterall.