Shell sells in Nigeria
Shell subsidiary, Shell Petroleum Development Company of Nigeria (SPDC) has sold two key mining leases.
The $488m deal disposes of SPDC's 30% stakes in Oil Mining Leases 26 and 42 in the Niger Delta and includes all related facilities. While helping Shell refocus its onshore interests in the country, it also provides the Nigerian Government with an opportunity to progress is strategy of developing domestic operators in upstream oil and gas production.
The larger of the two plots, Lease 42, will cost constortium Neconde Energy Ltd around $390m for SPDC's share. This includes approximately 814km² of land covering the Batan, Egwa, Odidi and Jones Creek fields. Civil unrest in the region has made production difficult, however the Batan field resumed production earlier this year to reach a current capacity of 15,000b/d. Total and Agip's Nigerian subsidiaries have also sold stakes in Lease 42, taking Neconde's overall interest to 45%.
The smaller Lease 26 share will to go Nigeria's FHN26 Ltd, an affiliate of Afren Plc, for around $98m based on current output of 6,000b/d from fields in the lease area.
