The Shell Petroleum Development Company of Nigeria Limited (SPDC), has completed the sale of its 3 per cent interest in Oil Mining Lease (OML) 17, located in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc (Transcorp), for a consideration of $533 million. A total of $453 million was paid at completion with the balance to be paid over an agreed period.

Completion follows the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.

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

SPDC stated that it is committed to transfer OML 17 in an orderly and responsible manner to the new owner, which will help 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.

In commenting on the news, 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 over 60 years and remains committed to a long-term presence here.”

SPDC is the operator of a joint venture between the Nigerian National Petroleum Corporation (55 per cent), SPDC (30 per cent), Total E&P Nigeria Limited (10 per cent) and Nigerian Agip Oil Company Limited (5 per cent).

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