Three IOCs sell 7 Oil Blocks for $2.57bn

Over the last two years; Shell, Total and Eni (Agip) have sold their stake in a jointly held stake in seven oil blocks for $2.569 billion (N411.04 billion).

The multinationals were said to have sold a 45-per-cent stake in the seven oil concessions in five transactions. The oil blocks, which are now operated by the Nigerian Petroleum Development Company (NPDC), the upstream subsidiary of the Nigerian National Petroleum Corporation (NNPC), were acquired by local companies alongside their foreign partners. They are Oil Mining Leases (OMLs) 3, 38, 41, 26, 42, 30 and 34.

Following growing attack on their facilities by militants in the Niger Delta between 2007 and 2009, the IOCs embarked on a divestment programme to sell some of their onshore assets in the region.

Seplat Petroleum Development Company, in partnership with French-based Maurel and Prom, paid $386 million to acquire OMLs 3, 38 and 41, while First Hydro Carbon Nigeria, alongside AFREN as foreign partners, bought OML 26 for $148 million. Neconde Energy Limited and its foreign partners, Kulczyk Oil Ventures, paid $585 million for OML 42, while OMLs 30 and 34 were acquired by Shoreline and Niger Delta Exploration and Production Plc (NDEP) at $850 million and $600 million, respectively. Shoreline was partnered by Heritage, while NDEP acquired its block with the Petrolin Group.

OML 40: NNPC, NPDC, Elcrest Seal Deal

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.

Petroleum Minister urged to sanction Agip boss over Nigerian Content

Niger Delta Indigenous Movement for Radical Change, NDIMRC, has urged the Petroleum Minister, Mrs. Diezani Alison-Madueke, to call the Vice-Chairman/Managing Director of Nigerian Agip Oil Company, NAOC, Mr. Ciro Pagano, to order over the Nigerian Content Act, imploring Economic and Financial Crimes Commission, EFCC, to also investigate activities of the company.

The group, in a statement by its President, Nelly Emma, praised the Petroleum Minister for her transparency in the industry and encouragement of indigenous companies, but urged her to sanction Agip boss, over his alleged continued subversion of the Nigerian Content Law.

The group noted that two years on after President Goodluck Jonathan signed the Nigerian Content Bill into law; Agip was still carrying on its operations as usual and has allegedly refused to carry indigenous companies along. It assured the minister of its preparedness to fully support her actions in enforcing the Nigerian Content Law to the letter.