The Shell Petroleum Development Co. of Nigeria Ltd. (SPDC) divested its 30% interest in oil mining lease 18 (OML18) and related facilities in the Eastern Niger Delta. Its interests in OML18 were assigned to Eroton Exploration & Production Co. Ltd., Royal Dutch Shell Plc said March 20.
OML18 covers 1,035 sq km and includes the Alakiri, Cawthorne Channel, Krakama and Buguma Creek fields and related facilities. Flow stations, associated gas infrastructure and oil and gas pipelines are part of the infrastructure. The divested fields produced about 14 Mboe/d during 2014.
The cash proceeds for Shell (NYSE: RDS-A, RDS-B) totaled $737 million.
Total E&P Nigeria Ltd. and Nigerian Agip Oil Co. Ltd. also assigned their interests in the lease-- 10% and 5%, respectively—to Eroton Consortium. Eroton has a 45% interest in OML18.
SPDC operates a joint venture between Nigerian National Petroleum Corp. (55%), SPDC (30%), Total E&P Nigeria Ltd. (10%) and Nigerian Agip Oil Co. Ltd. (5%).
The Federal Government of Nigeria received all approvals related to the transaction.
Recommended Reading
Private Producers Find Dry Powder to Reload
2024-09-04 - An E&P consolidation trend took out many of the biggest private producers inside of two years, but banks, private equity and other lenders are ready to fund a new crop of self-starters in oil and gas.
BPX’s Koontz: The Rise of a Shale Man
2024-07-02 - CEO Kyle Koontz takes the reins of BPX Energy’s rapid onshore growth amid big changes at BP.
Investing ‘Generationally’: The Family Office View of Oil and Gas
2024-07-25 - Key family offices, whose wealth developed from other industries, are filling in oil and gas investment gaps left by the flight of endowment and institutional capital from the space.
Permian Consolidation Piques Interest in Drill-to-earn Opportunities
2024-08-14 - Drill-to-earn arrangements have been utilized in the Permian for years in the forms of joint ventures, farm-outs and other customizable agreements.
The ABCs of ABS: Financing Technique Shows Flexibility and Promise
2024-07-29 - As the number of ABS deals has grown, so have investors’ confidence with the asset and the types of deals they are willing to underwrite.