Tuesday, November 13, 2012
Heritage JV in Nigeria Sees Close of OML 30 Purchase
Shell’s unit in Nigeria, Shell Petroleum Development Co. (SPDC), has closed its eighth sale in Nigeria of its Niger Delta assets. The company completed the assignment of its 30% interest in OML 30 to Shoreline Natural Resources Ltd.. Total cash proceeds for Shell amount to some $567 million.
This divestment is part of SPDC’s onshore portfolio and is in line with Nigerian government’s aim of developing indigenous companies in the country’s upstream oil and gas business.
OML 30 covers an area of some 1,097 sq km and includes the Kokori, Afiesere, Oweh, Olomore, Eriemu, Evwreni, Oroni and Isioka fields and related facilities. The divested infrastructure includes most of the Trans Forcados major crude oil pipeline from OML 30 to the Forcados River manifold. The remaining 8 km to the Forcados terminal will remain with the SPDC JV. The divested fields produced around 35,000 bpd of oil and condensate.
Total E&P Nigeria (10%) and Nigerian Agip Oil Co. (5%) have also assigned their interests in the lease, ultimately giving Shoreline a 45% interest.
SPDC is the operator of a JV between NNPC (55%), Shell (30%), Total E&P Nigeria (10%) and Nigerian Agip Oil Co. (5%).
Shoreline Natural Resources Ltd. is a Nigerian JV company between Shoreline Power Company Ltd. and Heritage Oil Plc.