Royal Dutch Shell Concludes Sale of four Nigerian onshore oil blocks
Shell has concluded the sale of its four Nigerian onshore oil blocks – Oil Mining Leases (OML) 18, 24, 25 and 29 – in addition to the Nembe Creek Trunk Line (NCTL) – which it put up for sale following a 2013 review of its business in the country.
The sale of these four assets will bring the number of oil blocks sold by Shell to 12 in the last four years, as the oil major had previously sold OMLs 4, 38, 41, 26, 30, 34, 40 and 42 to local investors and their international partners.
In an effort to reduce its exposure to onshore operations, which are more prone to security threats, Shell is divesting 30 per cent of its interest in the four blocks, while Total and ENI are selling 10 per cent and five per cent, respectively.
Fifty-five per cent will be retained by the Nigerian National Petroleum Corporation (NNPC) under a Joint Operating Agreement (JOA) with the new buyers, such as Aiteo and Erotron.
OMLs 4, 38 and 41 are operated by Seplat Petroleum Development Company , while the operatorship of the OMLs 26, 30, 34, 40 and 42 blocks were transferred to the Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of NNPC.