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Shell Unit Sells Interest in Nigerian Oil Mining Lease for $567

“Shell are a bunch of cowards to walk away from 35,000 bopd. It would be better to optimise the fields and squeeze more out”: “Thank you Donovans for your site, it reminds me how good we were and how deep Shell has sunk.”

Dow Jones Newswires:Published November 09, 2012

Royal Dutch Shell PLC (RDSA.LN) Friday said its unit Shell Petroleum Development Company of Nigeria Limited (SPDC) has completed the assignment of its 30% interest in Oil Mining Lease 30 (OML30) in the Niger Delta to Shoreline Natural Resources Limited for a total cash proceeds of 567 million dollars.

MAIN FACTS:

-Divestment is part of the re-shaping 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.

-OML30 covers an area of 1097 square kilometers and includes the Kokori, Afiesere, Oweh, Olomore, Eriemu, Evwreni, Oroni and Isioka fields and related facilities.

-Divested infrastructure includes most of the Trans Forcados major crude oil pipeline from OML30 to the Forcados River manifold.

-Remaining 8 kilometer to the Forcados terminal will remain with the SPDC joint venture.

-Divested fields produced around 35,000 barrels per day of oil and condensate (100%).

-Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%) have also assigned their interests in the lease, ultimately giving Shoreline a 45% interest.

-All approvals have been received from the relevant authorities of the Federal Government of Nigeria.

-Class A shares of Royal Dutch Shell at 0929 GMT down 4 pence, or 0.2%, at 2136 pence.

-Write to Tapan Panchal at [email protected]

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Copyright © 2012 Dow Jones Newswires

Comment received from ‘an old EP hand’

It is very sad to see Shell sells OML30. I was there when we installed the gaslift compressors (1000HP Thomassen en 600 HP Ingersoll Rand) in the Aferolo fields. And I remember the Kokori crude, very nice stuff, the rebels used it to run their dieseltrucks and we used it as fuel on the landrigs.

Shell are a bunch of cowards to walk away from 35,000 bopd. It would be better to optimise the fields and squeeze more out. I fear the overhead and high salaries in posh offices are detrimental to properly run oilfields. Much easier to make Powerpoint slides than optimising old wells! First gaslift report on Olomoroh is from 1965….

Those were the days!

Thank you Donovans for your site, it reminds me how good we were and how deep Shell has sunk. It was only as recent as the late 90s when the boys in EP stated that production in Nigeria had to double in the next 10 or so years and that total production would grow from the 6 million boepd in those days. I assume something has gone haywire, especially if the current oilprice is 2-4x the projected oilprice in those ‘good old days’ when we started to promise and not deliver…..

POSTING BY “RELIEVED”

To ‘Old EP Hand’: Amen, Brother. Shell is nowhere near the company it once was. And as a result I don’t think its future is anywhere as bright as senior management would like everyone to believe.

royaldutchshellplc.com and its also non-profit sister websites royaldutchshellgroup.com, shellenergy.website, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net and shell2004.com are all owned by John Donovan. There is also a Wikipedia article.

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