The Shell Petroleum Development Company of Nigeria Limited (SPDC) on Friday announced the completion of the sale of its shares in Oil Mining Lease (OML) 17 to TNOG Oil and Gas Limited.
A statement by the company said the deal was worth $533m (N203.18bn) but a total of $453m had been paid at completion with the balance to be paid over an agreed period.
TNOG Oil and Gas Limited is a company related to Heirs Holdings Limited and Transnational Corporation of Nigeria.
The oil major had 30 percent interest in (OML) 17 located in the Eastern Niger Delta.
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It said the deal was completed after receiving necessary approvals from the relevant Nigerian authorities.
SPDC said it would retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.
The company said, “SPDC 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.”
The Managing Director of SPDC and Country Chairman of Shell Companies in Nigeria, Osagie Okunbor, 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.”
According to Shell, other SPDC JV partners, Total E&P Nigeria Limited and Nigerian Agip Oil Company Limited have also assigned their interests of 10 percent and five percent respectively in the lease, ultimately giving TNOG Oil and Gas Limited a 45 percent interest in OML 17.
The acquisition also includes all assets of Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and ENI in the oil block.
TNOG Oil and Gas Limited will also have sole operatorship of the asset, it was further announced.
Heirs Holdings and Transcorp are both chaired by Tony Elumelu, who is also the chairman of United Bank for Africa Plc.
 on Friday announced the completion of the sale of its shares in Oil Mining Lease (OML) 17 to TNOG Oil and Gas Limited.){kind=link}