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Shell assigns Niger Delta license stakes

Shell Petroleum Development Co. of Nigeria Ltd. (SPDC) has completed the assignments of 30% interests in two oil mining leases in the Niger Delta to separate buyers.

FHN26 Ltd., an affiliate of Afren PLC, London, acquires SPDC’s interest in OML 26, covering 480 sq km, for $98 million. Two fields on the license produce about 6,000 b/d of oil gross.

Neconde Energy Ltd., a majority Nigerian-owned consortium, acquires SPDC’s share of OML 42 for $390 million. The 814-sq-km area includes Batan, Egwa, Odidi, and Jones Creek oil fields and related facilities. Operations had been shut down by militant activity, but Batan field has resumed flow at about 15,000 b/d.

SPDC is operator of a joint venture of Nigerian National Petroleum Corp. (55%), Shell (30%), Total E&P Nigeria Ltd. (10%), and Nigerian Agip Oil Co. Ltd. (5%).

Shell said Total Nigeria and Nigerian Agip also have assigned their interests in the leases, giving buyers 45% interests.


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