Elcrest Exploration and Production Nigeria Limited after a protracted oil block transaction with Shell, Total E&P and Agip, finally made a closure to the transaction between partners to the oil block OML 40.
After the initial challenges that had almost crippled the divestment of 45 per cent interest in Oil Mining Lease (OML) 40 by Shell and other partners and with the Federal Government’s approval of the stake assignment to Elcrest Exploration and Production Company, parties to the oil block finally signed all necessary documents to legalize the divestment deal.
Elcrest, is a joint venture vehicle owned by Starcrest Energy, a subsidiary of Emeka Offor’s Chrome Group and Eland Oil & Gas. It had on May 24, 2011 applied for consent of the Minister of Petroleum, Mrs. Diezani Alison-Madueke for the 45 per cent participating interest in OML 40. Without the government’s approval of the deal, the transaction between Shell and Elcrest would have remained illegal and Elcrest also stood the risk of forfeiting 10 percent of the bid price, which was escrowed with JP Morgan in the United Kingdom.