WorldStage Newsonline-- Shoreline Natural Resources Limited has reached an agreement with Shell Petroleum Development Company of Nigeria Ltd (SPDC), Total E&P Nigeria Ltd and Nigeria Agip Oil Company to acquire a 45 per cent participating interest in a producing oil mining lease in Nigeria (OML 30).
Located onshore in the delta of Nigeria approximately 45 kilometres east of Warri, Southern Nigeria, OML 30 covers an area of 1,095 square kilometres. The licence includes eight producing fields, associated infrastructure, and ownership and operation of a segment of the Trans Forcados Pipeline.
According to a statement, the Nigerian National Petroleum Corporation (NNPC) through its subsidiary, Nigerian Petroleum Development Company (NPDC) will hold the remaining 55 per cent interest, and NPDC will also be the Operator of OML 30, working in partnership with Shoreline to further develop the field.
“The Standard Bank Group and JP Morgan provided instrumental support in financing the acquisition price of OML 30, and Standard Bank will further provide the permanent long term financing for the Company,” the statement said.
Mr. Kola Karim, Chief Executive Officer of Shoreline Energy International, said: “This is a major development for Shoreline, taking us into the upstream oil and gas sector at such a significant time when the Nigerian government is promoting active participation from indigenous companies. Shoreline, along with Heritage’s strong technical team and upstream experience will become one of the leading indigenous oil producing companies in Nigeria. This will strengthen our existing network of relationships with the local communities, local government & authorities in the oil producing areas of Nigeria.
“Shoreline will inaugurate capacity developments and training programmes ensuring we add value and develop close relationships with local communities and other stakeholders in the delta region.”
Mr. Paul Atherton, Chief Financial Officer of Heritage Oil Plc, said: “The acquisition of OML 30 is transformational for Heritage, providing a material change in production and reserves whilst pursuing our strategy of generating shareholder value. As part of Heritage’s diversified portfolio of exploration, appraisal and development assets, OML 30 is expected to provide significant production and cash flow, thereby de-risking Heritage’s financial profile, and our technical expertise will provide a comparative advantage in creating additional value.
“Heritage is very excited to be participating in the development of OML 30 and entering into Nigeria. We look forward to continuing to build local relationships and partnerships with the communities in the delta region and creating a platform to build a substantial presence in Nigeria.”
Shoreline is a joint venture between Shoreline Power a leading private Nigerian energy and Infrastructure Company and Heritage Oil Plc, an independent upstream exploration and production company listed on both the London and Toronto stock exchanges.