• Shell divests 30% stake in Nigerian assets for $737m

    The Shell Petroleum Development Company of Nigeria (SPDC), a subsidiary of Royal Dutch Shell (Shell), has divested a 30% stake in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta to Eroton Exploration and Production Company for $737m.

    Eroton was established by a consortium of companies, including Mart Resources, Midwestern Oil and Gas and Suntrust Oil and Gas.

    The divestment is a part of Shell's onshore portfolio strategic review and complies with the goal of Nigerian Government's plan to encourage local companies in the upstream oil and gas business.

    Meanwhile, Shell's partners Total E&P Nigeria and Nigerian Agip Oil Company have also sold their interests of 10% and 5%respectively in the lease to the Eroton.

    With these transactions worth $1bn, Eroton will own 45% in OML 18. The remaining 55% is held by the Nigerian National
    Petroleum Corporation.

    Covering an area of 1,035km2, the OML18 includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities.

    The divested infrastructure includes flow stations along with associated gas infrastructure plus oil and gas pipelines within the OML, while the divested fields produced approximately 14,000 barrels of oil equivalent per day (100%) during 2014.

    The OML 18's crude oil production is exported through the Bonny Crude Oil Terminal through the Nembe Creek Trunkline while the gas production is delivered to various power, industrial and commercial customers through the Nigeria Gas Company's pipeline.

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

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