(Alliance News) - Royal Dutch Shell PLC on Friday said it has now sold its 30% interest in oil mining lease 17, located in the Eastern Niger Delta, for USD533 million.
The 30% interest was sold to TNOG Oil & Gas Ltd, a related company of Heirs Holdings Ltd and Transnational Corp of Nigeria PLC with USD453 million paid at completion with the balance to be paid later.
Completion of the sale follows approvals from Nigeria's federal government.
Shell Petroleum Development Co of Nigeria Ltd, which sold the stake, will keep its interest in the Port Harcourt and residential areas that fall within the lease areas.
Osagie Okunbor, country chair 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."
Other Shell Petroleum Development Company of Nigeria joint venture partners have also assigned their interest in the lease, Total SE's Total E&P Nigeria Lts assigning its 10% and Nigerian Agip Oil Co Ltd assigning its 5% interest. This ultimately gives TNOG Oil & Gas Ltd a 45% interest in OML 17.
Shares in Shell 'A' closed down 1.4% at 1,483.00 pence in London on Friday afternoon. The oil major's 'B' shares lost 1.6% to 1,420.00p.
By Anna Farley; annafarley@alliancenews.com
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