SPDC completes sale of interest in OML 17 in Nigeria

SPDC new imageThe Shell Petroleum Development Company of Nigeria Limited (SPDC) has completed the sale of its 30% interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta and associated infrastructure to TNOG Oil and Gas Limited

TNOG is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp) for a consideration of US$533mn. A total of US$453mn was paid at completion with the balance to be paid over an agreed period.

SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.

SPDC aims to transfer OML 17 in an orderly and responsible manner to the new owner, which is expected to provide a sustainable long-term plan to unlock its full potential. The sale also enables SPDC to focus on supporting the Federal government of Nigeria’s national energy agenda in its remaining OMLs through oil and gas production, payment of royalties, taxes and levies as well as advancing local content and providing social investments.

Osagie Okunbor, managing director of SPDC and country chairman of Shell Companies in Nigeria, said, “As with previous divestments, we will facilitate a successful transition to new ownership. Shell has been in Nigeria for more than 60 years and remains committed to a long-term presence here.”

The other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited, have also assigned their interests of 10% and 5% respectively in the lease, ultimately giving TNOG Oil and Gas Limited a 45% interest in OML 17.

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