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Shell wraps up USD 737m Nigeria asset sale

20th March 2015

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell, has completed the assignment of its 30 per cent interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell, has completed the assignment of its 30 per cent interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta
OML18 covers an area of 1,035 square kilometres and includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities

Its interests in OML18 were assigned to Eroton Exploration & Production Company Limited.

Total cash proceeds for Shell amount to USD 737m.

This divestment is part of the strategic review of SPDC’s onshore portfolio 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.

Shell has been in Nigeria for more than 50 years and remains committed to keeping a long-term presence there – both onshore and offshore. Through SPDC and its other Nigerian companies, Shell responsibly produces the oil and gas needed to help fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.

OML18 covers an area of 1,035 square kilometres and includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities. The divested infrastructure includes flow stations together with associated gas infrastructure plus oil and gas pipelines within the OML. The divested fields produced on average around 14,000 barrels of oil equivalent per day (100 per cent) during 2014.

Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10 per cent and 5 per cent respectively in the lease, ultimately giving Eroton Consortium a 45 per cent interest in OML18.

All approvals have been received from the relevant authorities of the Federal Government of Nigeria.

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