By  Michael Eboh & Funmi Amodu

Shell Petroleum Development Company of Nigeria Limited (SPDC), yesterday, said it has completed the sale of its 30 per cent stake in Oil Mining Lease (OML) 24 and other related facilities to Newcross Exploration and Production Limited for $600 million, about N96 billion.

A refinery

Shell, in a statement by Mr. Precious Okolobo, Corporate Media Relations Manager, further stated that Total Exploration & Production Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their 10 per cent and five per cent interest in the lease respectively, bringing Newcross’ stake in the oil asset to 45 per cent.

OML 24, according to Okolobo, covers an area of some 430 square kilometres and includes the Awoba, Awoba Northwest and Ekulama fields and related facilities.

He explained that the divested infrastructure includes three oil flow-stations and three gas processing plants, in addition to various oil and gas pipelines.

“The divested fields produced on average around 13,000 barrels of oil equivalent per day (100%) during the first half of 2014,” he explained.

According to him, all approvals have been received from the relevant authorities of the Federal Government of Nigeria.

He said, “This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.

“Shell has been in Nigeria for more than 50 years and remains committed to keeping a long-term presence there, both onshore and offshore. Through SPDC and its other Nigerian companies, Shell responsibly produces the oil and gas needed to fuel the economic and industrial growth that generates wealth for the nation and jobs for Nigerians.”

Shell had a couple of days declared that it had divested from eight Oil Mining Leases (OMLs) in Nigeria from 2010 to date.

According to the company, it had sold its interests in OML 4, 38 and 41 which were sold on July 30, 2010.

Others are OML 26 and 42 which were sold on November 30, 2011; OML 40 on Aug. 31, 2012; OML 34 on Sept. 5, 2012 and OML 30 on Nov. 9, 2012, respectively.

The OMLs divested in the Eastern Niger Delta region are 26, 30, 34, 40, 42, 4, 41and 38, while another four had been penciled for divestment before 2015.

The first set of oil fields sold by Shell were oil mining leases (OMLs) 4, 38 and 41 acquired and operated by Seplat Petroleum Development Company.

OMLs 26, 30, 34, 40 and 42 were acquired by Nigerian Petroleum Development Company (NPDC).