Shell Petroleum Development Company of Nigeria (SPDC) sold OML 29, the Nembe Creek Trunk Line and related facilities in the Eastern Niger Delta to Aiteo Eastern E&P.
Covering an area of 983km2, OML 29 includes the Nembe, Santa Barbara and Okoroba fields.
The 100km long Nembe Creek Trunk Line was commissioned in 2010. It evacuates crude to the Bonny Crude Oil Terminal (BCOT) at the rate of 600,000 barrels per day.
The sale of OML 29 includes flow stations, associated gas infrastructure and oil and gas pipelines but excludes BCOT. It will continue to be operated by the SPDC JV.
The divested fields produced on average of around 43,000 barrels of oil equivalent per day (100%) during 2014, Shell said.
Aiteo Eastern E&P has acquired 45% in total in the OML 29 and the Nembe Creek Trunk Line with the other shareholders, Total E&P Nigeria and Nigerian Agip Oil also selling their interests of 10% and 5%, respectively.
Shell said in a statement that the divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Nigerian Government’s aim to support domestic companies in upstream oil and gas business.
Last week, SPDC sold a 30% stake in OML 18 and related facilities in the Eastern Niger Delta to Eroton Exploration and Production for $737m. Total E&P Nigeria and Nigerian Agip Oil also divested their stake in the property.
Image: Shell will continue to operate the Bonny Crude Oil Terminal in Nigeria. Photo: courtesy of Shell Global.
