Shell confirms sales agreements

LAGOS, October 29, 2014 – Royal Dutch Shell has confirmed the signing of sales agreements for four of its Nigerian onshore oilfields, OMLs 18, 24, 25 and 29 along with Nigeria’s main onshore pipeline, the Nembe Creek Trunk Line (NCTL). Shell is selling its 30-percent stake in these OMLs and the pipeline due to a variety of problems, resulting in too many legal hassles and liabilities, it has encountered in its onshore oil production.

Together with its partners Total and Eni, Shell signed an agreement to sell a 45-percent stake in OML 18 to Canadian oil and gas company Mart Resources for a yet undisclosed value. The remaining stake will continue to be owned by the Nigerian national oil company. While these sales indicate Shell’s distancing itself from onshore production, a spokesperson assured that it will continue to have a significant onshore presence.

Read our latest insights on: