Shell sell OML 29 in Nigera for $1.7bn

Royal Dutch Shell has sold its stake in Nigeria’s oil mining lease (OML) 29 to Aiteo Eastern E&P Company for $1.7bn.

The sale, which includes associated facilities in the Eastern Niger Delta, was completed through the Shell Petroleum Development Company of Nigeria (SPDC).

Shell said the divestment is part of SPDC’s strategic review of onshore portfolio in the West African country and is in line with the Federal Government of Nigeria’s plan of developing local firms in the country’s upstream oil and gas business.

OML29 covers an area of 983km² and includes the Nembe, Santa Barbara and Okoroba fields and related facilities.

The 100km long Nembe Creek Trunk Line was commissioned in 2010. It has a capacity of 600 thousand barrels per day.

It evacuates crude to the Bonny Crude Oil Terminal (BCOT), which is not part of the transaction.

The divested infrastructure includes flow stations together with related gas infrastructure as well as oil and gas pipelines within the OML.

The fields produced on average about 43,000 barrels of oil equivalent per day during 2014.

Total E&P Nigeria and Nigerian Agip Oil Company have also sold their interests of 10% and 5% respectively in the lease to Aiteo.

Shell has recently sold its 30% interest in OML 18 in Nigeria to Eroton Exploration & Production Company for $737m.