The Shell Petroleum Development Co. of Nigeria Ltd. (SPDC), a subsidiary of Royal Dutch Shell plc, has completed the assignment of its 30% interest in the oil mining lease 34 in the Niger Delta to ND Western Ltd.
Total cash proceeds for Shell amount to some $400 million.
This divestment is part of Shell's strategy of refocusing its onshore interests in Nigeria 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. This is the seventh onshore lease assignment that SPDC has completed in Nigeria since 2010.
The lease covers an area of 950 sq km and includes the Utorogu, Ughelli and Warri River fields and related facilities. The combined fields currently produce just under 300 million cu ft per day of gas and 15,000 b/d of oil and condensate.
Total E&P Nigeria Ltd., 10%; and Nigerian Agip Oil Co. Ltd., 5%; have also assigned their interests in the lease, ultimately giving ND Western Ltd. 45% interest.
