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Shell, TOTAL and Eni Divest their 45% Stake in OML 30, 34, 40 and 42, While NNPC Takes Over the Operatorship of the OMLs from Shell - Deal Analysis From GlobalData
GlobalData, Sep 2011, Pages: 9
Shell, TOTAL and Eni Divest their 45% Stake in OML 30, 34, 40 and 42, While NNPC Takes Over the Operatorship of the OMLs from Shell - Deal Analysis From GlobalData
Summary
Conoil acquired 45% stake in OML 30 for $1,290m in April 2011, while Niger Delta Exploration & Production and Petrolin acquired 45% stake in OML 34 for $600m in July 2011. Furthermore, Elcrest Exploration and Production Nigeria acquired 45% interest in OML 40 for $157m in April 2011, while Neconde Consortium acquired 45% interest in OML 42 for $600m in May 2011. On August 30, 2011, media reports suggested that NNPC took over the operatorship of OML 30, 34, 40 and 42. According to NNPC its takeover of the operatorship of the OMLs from SPDC was based on section 2.4.1 of the joint operating agreement (JOA) between the companies. Section 2.4.1 of the agreement allows a senior partner to assume the operations of blocks once any of its joint venture partners decide to divest. The NNPC is the majority shareholder with 55% equity in the joint venture. Prior to the deal, SPDC was the operator of the joint venture that had equity holdings by NNPC (55%), SPDC (30%), Total E&P (Nigeria) Limited (10%) and NAOC (5%). The joint venture had stakes in OML 30, 34, 40 and 42 in the Niger Delta basin. In 2010, Shell put on offer OML 30, 34, 40 and 42, for divestment. SPDC, Total E&P (Nigeria) Limited and NAOC, with a total stake of 45%, divested their stake in these licenses during 2011.
Scope
- Rationale behind Shell, TOTAL and Eni divesting stake in OMLs 30, 34, 40, and 42
- Strategic benefits for the companies involved,
- Geography covered -Nigeria
Reasons to buy
- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures taking place in African industry,
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the Nigeria's oil & gas market,
- Get a detailed analysis of a deal to enable you to take better decisions.
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