Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result

Shell sells OML 18 to Eroton Consortium

Nairametrics by Nairametrics
March 20, 2015
in Uncategorized
Shell sells OML 18 to Eroton Consortium
Share on FacebookShare on TwitterShare on Linkedin

The Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell) (NYSE: RDS.A) (NYSE: RDS.B), has completed the assignment of its 30% interest in oil mining lease (OML) 18 and related facilities in the Eastern Niger Delta. Its interests in OML18 were assigned to Eroton Exploration & Production Company Limited. Total cash proceeds for Shell amount to $737 million.

This divestment is part of the strategic review of SPDC’s onshore portfolio and is in line with the Federal Government of Nigeria’s aim of developing Nigerian companies in the country’s upstream oil and gas business.

Mart Resources Limited, Midwestern Oil and Gas Limited and Suntrust Oil and Gas Limited are the members of the Eroton consortium.

RelatedPosts

Why A Drop In Inflation Does Not Necessarily Mean A Drop In Prices Of Commodities

20 Financial Terms You Need To Know In The Stock Market

Afreximbank acted as the sole mandated lead arranger, as well as lender and facility agent, to raise the trade-backed $663 million SRBL required to close the asset sale.

Other participants included Diamond Bank Plc, Fidelity Bank Plc, Africa FINANCE Corporation (modelling bank), Ecobank Nigeria Plc, Zenith Bank Plc, FSDH Merchant Bank, and Shell Western Supply and Trading acting as lenders.
Eroton, an indigenous Nigerian company, incorporated as a special purpose vehicle by Mart Western Energy Limited, in 2014, won the bid for the acquisition of the oil block when Shell offered four oil block as well as the Nembe Creek Trunk Line (NCTL), which it put up for sale following a 2013 review of its business in the country.

News continues after this ad


The $663 million funding deal, which was completed on September 23, 2014, was structured as a seven-year facility, while the oil block licence will expire in five years.

However, a bespoke insurance tool was said to have been used to cover the risk in the event of non-renewal by the federal government, thus improving the borrowing capacity of the oil assets.

News continues after this ad


Afreximbank also used a standby letter of credit (LC) to backstop the payment obligations of the buyer to the sellers while the sale of the assets awaited the consent of the Minister of Petroleum Resources.

The overall ticket size was $1.2billion, and the acquisition was FINANCED through debt and equity and required the participation of Standard Chartered Bank as escrow agent in relation to the equity and loan components.

The acquisition of OML 18 by Eroton was one of four asset sales under Shell’s latest asset disposal programmes in Nigeria.

Others included the sale of OML 29 and the Nembe Creek pipeline to the Aiteo group for $2.562 billion; OML 24 to Pan Ocean Corporation Nigeria Limited for $900 million; and OML 25 to Crestar for $453 million.

However, NNPC has halted the sale of OML 25 to Crestar, resulting in a lawsuit instituted by Crestar challenging the action.

 

 

 

Related

Tags: News Review

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

inq
avatrade
Stanbic bank
Mega Millions
UBN
Hot forex
Access Bank
Bankers Committee
First bank






    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • Nigeria Data Protection Bureau probes UBA, Philips Consulting, for alleged data breach
    • Flour Mills of Nigeria Plc (FMN) Reaffirms its Commitment to Transformational Impact with the Release of its 2021/2022 Sustainability Report
    • Brain drain, tax and other economic effects of migration in Nigeria

    Follow us on social media:

    Recent News

    Nigeria Data Protection Bureau probes UBA, Philips Consulting, for alleged data breach

    Nigeria Data Protection Bureau probes UBA, Philips Consulting, for alleged data breach

    August 16, 2022
    Flour Mills of Nigeria Plc (FMN) Reaffirms its Commitment to Transformational Impact with the Release of its 2021/2022 Sustainability Report

    Flour Mills of Nigeria Plc (FMN) Reaffirms its Commitment to Transformational Impact with the Release of its 2021/2022 Sustainability Report

    August 16, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Financial Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Metrics
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • Business News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com