The Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), a subsidiary of Royal Dutch Shell plc, has completed the assignment of its interest in oil mining lease (OML) 29 and the Nembe Creek Trunk Line (OML 29 and NCTL) and related facilities in the Eastern Niger Delta. Its interests in OML29 and the Nembe Creek Trunk Line were assigned to Aiteo Eastern E&P Co. Ltd. Total cash proceeds for Shell amount to some $1.7 billion.
This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.
OML29 covers an area of 983 square kilometers and includes the Nembe, Santa Barbara, and Okoroba fields and related facilities. The Nembe Creek Trunk Line is 100 kilometers long and has a capacity of 600 thousand barrels per day. It was commissioned in 2010 and evacuates crude to the Bonny Crude Oil Terminal (BCOT). BCOT is not part of the transaction, and it will remain owned and operated by the SPDC joint venture. 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 43,000 barrels of oil equivalent per day (100%) during 2014.
Total E&P Nigeria Ltd. and Nigerian Agip Oil Co. Ltd. have also assigned their interests of 10% and 5%, respectively, in the lease, ultimately giving Aiteo Eastern E&P Co. Ltd. a 45% interest in OML29 and the NCTL.
All approvals have been received from the relevant authorities of the Federal Government of Nigeria.
SPDC is the operator of a joint venture between the Nigerian National Petroleum Corp. (55%), SPDC (30%), Total E&P Nigeria Ltd. (10%), and Nigerian Agip Oil Co. Ltd. (5%).