By Ian Walker
LONDON--Royal Dutch Shell PLC (RDSB.LN) said Thursday it has
completed the sale of its 30% interest in Oil Mining Lease 24 in
the Eastern Niger Delta to Newcross Exploration and Production Ltd.
for $600 million.
The Anglo-Dutch oil major is selling the interest as part of the
strategic review of its subsidiary Shell Petroleum Development
Company of Nigeria Ltd.'s onshore portfolio, and follows approvals
from the relevant authorities of the Federal Government of
Nigeria.
Shell's Nigerian subsidiary is the operator of a joint venture
between the State-owned National Petroleum Corporation, which owns
55%, Total SA (TOT) of France with 10% and Eni SpA (E) of Italy,
which owns 5%.
In June, Shell announced a strategic review of its Niger Delta
operations, which it said could result in some divestments, while
at the same time announcing that it planned to invest $3.9 billion
in other projects onshore in the Delta.
Shell has been in Nigeria for more than 50 years and said it
remains committed to keeping a long-term presence there, both
onshore and offshore.
OML24 covers an area of some 430 square kilometers and includes
the Awoba, Awoba Northwest and Ekulama fields and related
facilities. The infrastructure being sold includes three oil-flow
stations and three gas-processing plants, in addition to various
oil and gas pipelines.
The fields produced on average around 13,000 barrels of oil
equivalent per day during the first half of 2014.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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