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Shell Sells OML 34 to NNPC and ND Western

By on August 1, 2012

Shell Petroleum has sold an onshore oil block known as Oil Mining Lease 34 or OML 34 to a consortium including Nigerian National Petroleum Corporation (NNPC) and ND Western, an indigenous oil and gas company.

ND Western gets 45% of the asset, whilst the NNPC through its Nigerian Petroleum Development Company subsidiary gets 55% of the stake, according to Fidel Pepple, NNPC spokesperson.

He said, “NPDC is the operator. It will operate the field on behalf of the joint venture between it and ND Western.”

Shell MD, Mutiu Sunmonu reacted to speculation that the oil giant was leaving Nigeria and that the divestment of its assets was a strategic move by the company.

He said, “We are not leaving the Western Niger Delta because of insecurity or environmental issues. We are also not leaving Nigeria.

“I have continued to stress the point that the divestment of our equity from some oil blocks in the Niger Delta is a strategic refocusing of our portfolio.”

He added that the sales of Shell assets were to serve to strengthen the country’s long term position in the country.

His words: “Our asset sales are aimed at strengthening our long-term position in Nigeria. In fact, what this means is that our interests are being transferred to consortia of indigenous independent companies in support of government policy of encouraging the growth of Nigerian companies in the oil and gas sector, and will deliver many opportunities for them. It does not mean we are leaving. For example, SPDC continues to operate the Forcados Terminal in Western Niger Delta.”