Rampant oil theft, vandalism and security issues forcing oil majors offshore in Nigeria
SPDC Completes 8th Nigerian Oil Mining Lease Sale
The Shell Petroleum Development Company of Nigeria (SPDC) has completed the sale of its 30% interest in Oil Mining Lease 30 (OML 30) to Shoreline Natural Resources Limited, a Nigerian joint venture between Shoreline Power Company Ltd and Heritage Oil Plc.
SPDC, a subsidiary of Royal Dutch Shell Plc, states that the divestment is in line with the Federal Government’s aim of developing Nigerian companies in the country’s upstream oil and gas business.
Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%) have also assigned their interests in the lease, ultimately giving Shoreline a 45% interest.
OML30 covers an area of some 1097 square kilometres and includes the Kokori, Afiesere, Oweh, Olomore, Eriemu, Evwreni, Oroni and Isioka fields, all producing fields with gross 2P oil reserves of 1.1 billion barrels of oil valued at $3-3.7 billion (by RPS Energy). It is one of the largest blocks in Nigeria currently in production.
The divested infrastructure also includes most of the Trans Forcados major crude oil pipeline from OML30 to the Forcados River manifold. The remaining 8 km to the Forcados terminal will remain with the SPDC joint venture.
In line with other Shell divestments, Nigerian Petroleum Development Company (NPDC) will operate the block.
Total may also be considering selling some of its Nigerian assets, and following in the footsteps of Shell and ConocoPhillips.
Bloomberg has reported previously that Chinese owned Sinopec has been in talks with the French giant and has agreed a preliminary deal.