December 17, 2017

Nigeria’s Shell sells 30 per cent stake in Oil Mining Lease at US$ 600m

Shell Petroleum Development Company of Nigeria Limited (SPDC) has sold its 30 per cent stake in Oil Mining Lease (OML) 24 and other related facilities to Newcross Exploration and Production Limited at a cost of US$ 600m.

Mr. Precious Okolobo, Corporate Media Relations Manager at Shell confirmed the reports and stated that the divested infrastructure is made up of three oil flow-stations, three gas processing plants and various oil and gas pipelines. They all produced 13,000 barrels of oil per day.

”This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Nigerian government’s aim of developing Nigerian companies in the country’s upstream oil and gas business,” he said.

Shell has functioned in Nigeria for more than 50 years and remains committed to keeping a long-term presence there, both onshore and offshore and it has so far been producing the oil and gas needed to fuel the economic and industrial growth for the country.

Newcross Exploration and Production Limited is a wholly owned Nigerian company. In September this year, the company divested its oil blocks in Nigeria complaining of oil theft, community unrest and illegal bunkering.

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