The Shell Petroleum Development Company of Nigeria Limited (SPDC), has accomplished the sale of its 30% curiosity in Oil Mining Lease (OML) 17 within the Eastern Niger Delta, and related infrastructure, to TNOG Oil and Gas Limited, a associated firm of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), for a consideration of $533m. A complete of $453m was paid at completion with the steadiness to be paid over an agreed interval.
Completion follows the receipt of all approvals from the related authorities of the Federal Government of Nigeria.
SPDC will retain its curiosity within the Port Harcourt Industrial and Residential Areas, which fall throughout the lease space.
SPDC is dedicated to switch OML 17 in an orderly and accountable method to the brand new proprietor, which is able to assist to offer a sustainable long-term plan to unlock its full potential. The sale additionally permits SPDC to concentrate on supporting the Federal Government of Nigeria’s nationwide power agenda in its remaining OMLs by way of oil and fuel manufacturing, fee of royalties, taxes and levies in addition to advancing native content material and offering social investments.
Osagie Okunbor, Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, stated: “As with earlier divestments, we’ll facilitate a profitable transition to new possession. Shell has been in Nigeria for over 60 years and stays dedicated to a long-term presence right here.”
The different SPDC JV companions, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have additionally assigned their pursuits of 10% and 5% respectively within the lease, finally giving TNOG Oil and Gas Limited a 45% curiosity in OML 17.
OML 17 is a big onshore licence that features the northern half of Port Harcourt, which is the biggest metropolis within the Niger Delta. It extends from the low-lying swamp northwards into drier terrain the place the working circumstances are simpler. There are 15 oil and fuel fields on OML 17, six of that are producing. Crude is exported by way of the Trans-Niger Pipeline, to the Shell-operated Bonny oil and fuel terminal.The largest producer on OML 17 is Agbada, which lends …
SPDC is the operator of a three way partnership between the Nigerian National Petroleum Corporation (55%), SPDC (30%), Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%).
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