Cash proceeds to Shell are $400 million. The deal is SPDC’s seventh onshore lease assignment in Nigeria since 2010.
OML 34 covers 950 sq km and includes Utorogu, Ughelli, and Warri River oil and gas fields, which produce slightly less than 300 MMscfd of natural gas and 15,000 b/d of oil and condensate.
Total E&P Nigeria Ltd. (10%) and Nigerian Agip Oil Co. Ltd. (5%) have assigned their interests in the lease to ND Western Ltd.
SPDC operates a joint venture of Nigerian National Petroleum Corp. (55%), Shell (30%), Total E&P Nigeria (10%) and Nigerian Agip (5%).
Earlier this month SPDC sold its interest in OML 40 (OGJ Online, Sept. 4, 2012).