Shell sells further $1.7bn in Nigerian assets

LONDON (ShareCast) - Shell (LSE: RDSB.L - news) has completed the sale of more of its upstream Nigerian assets for $1.7bn, following another disposal in the country last week. The Shell Petroleum Development Company of Nigeria, a subsidiary of Royal Dutch Shell (Xetra: R6C1.DE - news) , sold its remaining interest in oil mining lease (OML) 29 and the Nembe Creek trunk pipeline and related facilities in the Eastern Niger Delta to local operator Aiteo Eastern E&P.

The divested fields produced on average around 43,000 barrels of oil equivalent per day during 2014.

Last week Shell, which in 2014 lost nearly $1bn from oil theft and sabotage in Nigeria, offloaded a 30% interest in oil mining lease 18 and related facilities elsewhere in the delta.

Shell said the divestments were part of the strategic review of SPDC's onshore portfolio and were in line with the Federal Government of Nigeria's aim of developing Nigerian companies in the country's upstream oil and gas business.

OML29 is one of the most endowed acreages in Nigeria, covering an area of 983 square kilometres, with the Nembe Creek trunk line being 100 kilometres long and having a capacity of 600 thousand barrels per day.

The trunk line was commissioned in 2010 and evacuates crude to the Bonny Crude Oil Terminal.

However, the Bonny terminal is not part of the transaction and will remain owned and operated by Shell.