The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell Plc has completed the assignment of its 30 per cent interest in Oil Mining Lease 24 (OML24) and related facilities in the Eastern Niger Delta to Newcross Exploration and Production Limited.
Total cash proceeds for Shell amount to about $600 million. 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 produces the oil and gas needed to fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.
OML24 covers an area of some 430 square kilometres and includes the Awoba, Awoba Northwest and Ekulama fields and related facilities.
“The divested infrastructure includes three oil flow-stations and three gas processing plants, in addition to various oil and gas pipelines, “it stated.
It stated that the divested fields produced on average around 13,000 barrels of oil equivalent per day during the first half of 2014.
The firm stated that Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%) have also assigned their interests in the lease, ultimately giving Newcross a 45 per cent interest.
“All approvals have been received from the relevant authorities of the Federal Government of Nigeria, “it stated.
SPDC is the operator of a joint venture between the Nigerian National Petroleum Corporation (55%), SPDC (30%), Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%). Newcross Exploration and Production Limited is a wholly owned Nigerian company.
Investigations showed that Newcross is an emerging indigenous oil and gas exploration and production company.
The management of Newcross stated that with primary focus in the upstream sector of the industry, the organisation has a good understanding of the African operating environment which it has developed from its current operations in Sub-saharan Africa, and its activity in the Niger Delta Petroleum Province.
“Our management team and advisers have brought together extensive local and international experience, backed by a good understanding of the socio-political climate, in identifying and operating hydrocarbon assets under a cordial relationship with our host communities,” it stated.
It stated that the firm consistently seeks an enabling environment to operate with a team of highly dedicated and focused professionals.
“Using our model, we are currently operating the OPL-283 (PSC OPL-283 on behalf of NNPC/Rayflosh/ Newcross) concession in the Northern aspect of the Niger Delta while we continue to be an active partner in the Egbaoma Marginal field on OML 38 with Platform Petroleum Limited (the operator of the field), in addition to fast tracking the acquisition of other strategic assets,” it stated.
References:
National Mirror
Leadership
* Source: Kline & Company, Competitive Intelligence for the Global Lubricants Industry, 2008–2018.
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