A unit of Heritage Oil PLC agreed to acquire a 45% stake in producing oil Block OML 30 and related assets in Nigeria from Shell Petroleum Development Co. of Nigeria Ltd. and partners for $850 million pending approval from shareholders.
Nigerian National Petroleum Corp. will retain its 55% interest in OML 30, which produces 35,000 b/d.
Heritage said the proposed acquisition provides it with more diversified assets, balancing exploration with production and extending Heritage’s holdings within its core areas of Africa and the Middle East.
OML 30 is an onshore block in the Niger Delta about 50 km east of Warri in southern Nigeria. The lease covers 1,097 sq km and includes eight main producing fields with oil and gas in numerous stacked reservoirs.
The OML 30 lease is scheduled to expire in June 2019, and Heritage expects to renew the lease based upon conditions outlined by current Nigerian law.
Acquisition assets include a 45% interest in the Trans Forcados pipeline between the Eriemu manifold and the Forcados River manifold. This pipeline segment is known as the OML 30 Trans Forcados Pipeline.
Transaction terms call for a reverse takeover by Shoreline Natural Resources Ltd., a special purpose private Nigerian company formed between Heritage, a UK independent, and its Nigerian partner, Shoreline Power Company Ltd.
Partners with Shell Nigeria in the assets being sold are Total E&P Nigeria Ltd., and Nigerian Agip Oil Co. Ltd. The parent companies involved are Royal Dutch Shell PLC 30%, France’s Total SA 10%, and Italy’s Eni, 5%.
Shell has been selling its onshore Nigeria interests to concentrate on developing offshore fields.
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