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Monday, March 23, 2015
Shell’s subsidiary in Nigeria, Shell Petroleum Development Co. (SPDC), completed the sale of its 30% interest in OML 18 and related facilities in the Eastern Niger Delta to Eroton Exploration & Production Co. The sale of OML 18 resulted in cash proceeds for Shell in the amount of $737 million.
The divestment is just one of many Shell has instigated over the past few years in Nigeria as part of its strategic review of SPDC’s onshore portfolio. The sale of OML 18 to Eroton is also in line with the Nigerian government’s local content development policy.
OML18 covers an area of 1,035 sq km 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 boepd gross during 2014.
Total E&P Nigeria Ltd. and Nigerian Agip Oil Company Ltd. have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving Eroton Consortium a 45% interest in OML18.
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