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.
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