SPDC Concludes Sale Of OML 18

The Anglo-Dutch oil giant,
Shell Petroleum Development Company of Nigeria (SPDC) says it has completed the sale of its 30 per cent interest in Mining Lease 18 and its related facilities in Eastern Niger Delta.
According to a statement posted on its website, the company on Friday said its interest in the OML 18 oil block had been assigned to Eroton Exploration and Production Company Limited.
It said  total proceeds from the divestment amount to $737m.
The statement also revealed that Total Exploration and Production Limited and Nigeria Agip Oil Company Limited had also assigned their interest of 10 per cent and 5 per cent respectively in the lease, giving Eroton consortium a 45 per cent interest in the OML 18.
It further disclosed that the Nigeria National Petroleum Corporation (NNPC) has 55 per cent interest in the oil block.
SPDC said all the approvals had been received from the relevant authorities of the Federal Government of Nigeria.
“This divestment is part of the strategic review of the SPDC’s onshore portfolio and is in strict adherence to the Federal Government’s aim of developing Nigerian companies in the upstream and gas business”, said Shell.
It said for more than 50 years the company had been in Nigeria, it had remained committed to keeping a long-term presence in both onshore and offshore.
The statement further explained that through SPDC and other Nigerian companies, it had produced the oil and gas needed to fuel the economic and industrial growth that generated wealth and jobs for Nigeria.
The OML 18 covers an area of 1,035 Square Kilometres which includes the Alakiri, Cawthorne Channel, Krakama, Buguma Creek fields and related facilities.
The divested fields produced an average of about 14,000 barrels of oil equivalent per day in 2014, according to the statement, adding that the company in October 2014, signed the sales agreement for all the Nigeria oil assets it put up for sale following a 2013 review of its business in Nigeria.

Chris Oluoh