Royal Dutch Shell has signed sales agreements for all the Nigerian oil assets it put up for sale following a 2013 review as part of its cost-cutting drive. The assets include Shell’s 30 percent stake in oil mining leases (OML) 18, 24, 25, 29 and the Nembe Creek Trunk Line (NCTL).
Shell has opted to move away from Nigerian onshore oil production, which is plagued by massive oil theft, security problems and oil spills and is also becoming a major source of legal liabilities.
The company also said that, together with its partners Total and Eni, it had signed an agreement to sell their 45 percent stake in OML 18 to a consortium led by Canadian oil and gas company Mart Resources. The remaining share of the oil field is owned by Nigeria’s national oil company.
Mart confirmed it had entered into an agreement for the acquisition of OML 18, whose production it said ranged between 20,000 to 30,000 barrels per day from around 30 wells.
The value of the deals was not disclosed. The sale process “has not yet fully concluded but we can confirm that we have now signed sales and purchase Agreements for these Oil Mining Leases and the NCTL”, a Shell spokesman said.
“Nigeria remains an important part of Shell’s portfolio, where we will continue to have a significant onshore presence in oil and gas, and which has clear growth potential, particularly in deep-water and onshore gas,” he added.
In March, it was reported that Nigerian firms Taleveras and Aiteo had made the highest bid of $2.85 billion for OML 29, the biggest of the four oil fields
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
