The Shell Petroleum Development Company of Nigeria Limited (SPDC) has announced the competition of the sale of its 30% interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure.
The transaction has been made to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), for a consideration of $533 million.
A total of $453 million was paid at completion with the balance to be paid over an agreed period, a company statement explained.
Completion follows the receipt of all approvals from the relevant authorities of the federal government of Nigeria.
SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.
SPDC assured its commitment “to transfer OML 17 in an orderly and responsible manner to the new owner, which will help to provide a sustainable long-term plan to unlock its full potential”.
The sale also enables SPDC to focus on supporting the federal government of Nigeria’s national energy agenda in its remaining OMLs through oil and gas production, payment of royalties, taxes and levies as well as advancing local content and providing social investments.
Managing Director of SPDC and country chairman of Shell Companies in Nigeria, Osagie Okunbor, said: “As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for over 60 years and remains committed to a long-term presence here.”
The other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving TNOG Oil and Gas Limited a 45% interest in OML 17.