SPDC COMPLETES SALE OF NIGERIA OIL FIELD STAKE (OML24) FOR $600 MILLION

                  

The Shell Petroleum Development Company of Nigeria Limited (SPDC) has completed the assignment of its 30 per cent interest in Oil Mining Lease 24 (OML24) and related facilities in the Eastern Niger Delta to Newcross Exploration and Production Limited (Newcross).

You will recall that OML24 covers an area of some 430 square kilometres and includes the Awoba, Awoba Northwest and Ekulama fields and related facilities

Total cash proceeds for Shell amount to some USD 600m. This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Nigerian government’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 fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.

OML24 covers an area of some 430 square kilometres and includes the Awoba, Awoba Northwest and Ekulama fields and related facilities.

The divested infrastructure includes three oil flow-stations and three gas processing plants, in addition to various oil and gas pipelines. The divested fields produced on average around 13,000 barrels of oil equivalent per day (100 per cent) during the first half of 2014.

Total E&P Nigeria Limited (10 per cent) and Nigerian Agip Oil Company Limited (5 per cent) have also assigned their interests in the lease, ultimately giving Newcross a 45 per cent interest.

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

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