Shell completes N96bn divestment from OML 24 to Nigerian firm

Shell Petroleum Development Company of Nigeria Limited, SPDC, on Wednesday announced the completion of its divestment of interest in Oil Mining Lease 24 (OML24) and related facilities in the Eastern Niger Delta region.

The company said on its website that the divestment, which fetched it total cash proceeds of about $600 million (about N96billion), involved the assignment of its 30 per cent of its interest in the lease to Newcross Exploration and Production Limited.

SPDC is the operator of a joint venture with the Nigerian National Petroleum Corporation (NNPC) 55 per cent; SPDC (30 per cent), Total E&P Nigeria Limited (10 per cent) and Nigerian Agip Oil Company Limited (NAOC) 5 per cent.

Newcross Exploration and Production Limited is a wholly Nigerian exploration and production company operating in the Niger Delta region.

Total E&P Nigeria Limited has also assigned 10 per cent of its interests in the lease, along with 5 per cent from NAOC, ultimately giving Newcross a 45 per cent stake in the mining lease.

OML24, which covers an area of some 430 square kilometres, include the Awoba, Awoba Northwest and Ekulama fields and related facilities currently producing an average of about 13,000 barrels of oil equivalent per day (100 per cent) during the first half of 2014.

The divested infrastructure includes three oil flow-stations and three gas processing plants, in addition to various oil and gas pipelines.

SPDC Corporate Media Relations Manager, Precious Okolobo, said the divestment was part of the strategic review of SPDC’s onshore portfolio in Nigeria in line with the Federal Government’s policy of developing indigenous companies’ operational capacity 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,” Mr. Okolobo said.

“Through SPDC and its other Nigerian companies, Shell responsibly produces the oil and gas needed to fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians,” he added.

He said all relevant approvals have been received from the Department of Petroleum Resources (DPR) and other approving Federal Government authorities in the oil and gas industry.

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