State oil company Nigerian National Petroleum Corp (NNPC) has acquired a 55% stake in OML 34, an onshore oil block in Nigeria, from Shell Petroleum Development Corporation, a unit of Royal Dutch Shell.
The remaining 45% has been acquired by ND Western from Shell, which has been planning to divest three onshore blocks OMLs 30 and 40 this year.
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Shell Petroleum Development Corporation is a Shell-run joint venture with NNPC, which holds 55%; EPNL, which holds 10%; Agip, which holds 5%; and Shell, which holds 30%.
In a statement released by NNPC the company stated, "The taking over of oil mining lease (OML) 34 by the Nigerian National Petroleum Corporation and ND Western [is] part of measures to grow the in-country upstream capacity of the petroleum industry."
Shell’s sale is in line with its divestment strategy, following similar divestments over the past two years as its onshore facilities faced militancy and rampant oil theft problems.
The company sold its 30% stake in Nigerian onshore oil block OML 42 to Neconde Energy in 2011, for $390m.
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By GlobalDataIt also sold its 30% stake in block OML 26 to First Hydrocarbon Nigeria for $98m, reports Reuters.
