THE HAGUE, The Netherlands, September 5, 2012 /PRNewswire/ –
The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell) (NYSE:RDS.A)(NYSE:RDS.B), has completed the assignment of its 30% interest in Oil Mining Lease 34 (OML-34) in the Niger Delta to ND Western Limited. Total cash proceeds for Shell amount to some US$400 million.
This divestment is part of Shell’s strategy of refocusing its onshore interests in Nigeria 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. This is the seventh onshore lease assignment that SPDC has completed in Nigeria since 2010.
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 fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.
OML 34 covers an area of some 950 square kilometres and includes the Utorogu, Ughelli and Warri River fields and related facilities. The combined fields currently produce just under 300 million standard cubic feet per day of gas and 15,000 barrels per day of oil and condensate (100%).
Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%) have also assigned their interests in the lease, ultimately giving ND Western Limited a 45% interest.
All approvals have been received from the relevant authorities of the Federal Government of Nigeria.
Notes for editors
SPDC is the operator of a joint venture between the Nigerian National Petroleum Corporation (55%), Shell (30%), Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%).
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SOURCE Royal Dutch Shell plc
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