Royal Dutch Shell completed the sale of its 30 percent stake in onshore Nigeria license OML18 Friday to Eroton Exploration & Production Company for $737 million.
The sale was completed through a Shell subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), and is part of a strategic review of SPDC’s onshore portfolio.
OML18 covers about 400 square miles and includes the Alakiri, Cawthorne Channel, Krakama, and Buguma Creek fields and related facilities.
Under the deal Eroton will acquire related infrastructure including flow stations along with associated gas infrastructure as well as oil and gas pipelines in the license.
The OML 18 fields produced an average of about 14,000 barrels of oil equivalent per day during 2014.
Eroton also acquired a 10 percent stake in the block from France’s Total and a 5 percent stake from the Nigerian Agip Oil Company Limited.
Eroton will now hold a 45 percent interest in OML18.
The Nigerian National Petroleum Corporation holds the remaining 55 percent interest.
All approvals for the deal have been received from the relevant authorities of the Federal Government of Nigeria, Shell said.
Shell sold its 30 percent stake in the Nigeria onshore oil mining lease 24 to Newcross Exploration and Production in November for $600 million.