Royal Dutch Shell PLC on Friday announced the completion of the divestiture of a 30 percent stake valued at $567 million, in oil-rich Nigeria’s Oil Mining lease 30 (OML30).
The oil gaint’s Nigerian unit, Shell Petroleum Development company (SPDC) made the sale to Shoreline Natural Resources Limited, an indigenous company.
According to BusinessDay, the divestiture is part of the restructuring of SPDC’s onshore portfolio which is in tandem with policy of the federal government of Nigeria to develop Nigerian companies and their contribution in the country’s upstream oil and gas business.
Nigeria, a member of the oil body OPEC, is the sixth largest oil producer in the world with about a 2 million barrel per day production level and struggles to keep its four existing refineries functional.
The government has since pushed its policy called: “Local Content Act,” and SPDC has been a strong supporter of the policy as it had begun contracting a number of its projects in the region to local companies.
According to reports, divested infrastructure include most of the Trans Forcados major crude oil pipeline from OML30 to the Forcados River manifold. Total E&P Nigeria Limited (10 percent) and Nigerian Agip Oil Company Limited (5 percent) have also assigned their interests in the lease, ultimately leaving Shoreline with a 45 percent interest.