On Nov. 30, the Shell Petroleum Development Co. of Nigeria Ltd. completed the assignment of its 30% interests in two oil mining leases and related facilities in the Niger Delta to two Nigerian companies for $488 million.
Oil Mining Lease 26 was assigned to FHN26 Ltd., an affiliate of Afren Plc, for $98 million (Shell’s share). The lease covers an area of some 480 sq km and is currently producing around 6,000 barrels of oil per day (b/d) from two fields.
Oil Mining Lease 42 was assigned to Neconde Energy Ltd., a majority Nigerian-owned consortium consisting of Nestoil Group, Aries E&P Co. Ltd., Aries E&P Co. Ltd, Kulczyk Investments and Kulczyk Oil Ventures, for $390 million (Shell’s share). The lease covers an area of some 814 sq km and includes the Batan, Egwa, Odidi and Jones Creek fields along with related facilities. Operations had been shut down because of militant activity, but production from the Batan field resumed earlier this year and is currently producing around 15,000 b/d.
Total E&P Nigeria Ltd. (10%) and Nigerian Agip Oil Co. Ltd. (5%) have also assigned their interests in both leases, ultimately giving the buyers 45% interests.
All approvals have been received from the relevant authorities of the federal government of Nigeria and the Nigerian National Petroleum Corp.
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