• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
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.

RelatedStories

CBN issues directive to curb mass sacking by banks

How companies determine who to fire in an economic crunch

November 29, 2022
shopping mall prices

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

July 17, 2019

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.

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.

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.

 

 

 

Tags: News Review
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

CBN issues directive to curb mass sacking by banks
Small Business

How companies determine who to fire in an economic crunch

November 29, 2022
shopping mall prices
Blurb

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

July 17, 2019
Treasury Bills
Financial Literacy

20 Financial Terms You Need To Know In The Stock Market

August 5, 2018
MTN Nigeria Plc
Business News

30% equity of MTN’s shares could go to retail investors

June 13, 2018
[The Nigerian Economy Daily] FG has approved the closure of five foreign missions and embassies
Macros

THIS WEEK: Big Macros and a very important task for President Buhari.

June 10, 2018
internet subscriptions growth
Business News

Why Glo and 9mobile are losing their internet mobile subscribers

June 5, 2018
Next Post

Champion Breweries reports N754m loss after tax

Leave a Reply Cancel reply

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

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • Top fintech apps in Nigeria with over 10 million downloads as of May 2025 
  • IMT 4.0. sets stage for 2025 Edition, names former McKinsey partner, tech innovator, Per Lagerström as headline speaker 
  • NGX, IFC strengthen Nigeria’s sustainable finance drive with labelled bond workshop

Follow us on social media:

Recent News

Top fintech apps in Nigeria with over 10 million downloads as of May 2025 

Top fintech apps in Nigeria with over 10 million downloads as of May 2025 

June 23, 2025
IMT 4.0. sets stage for 2025 Edition, names former McKinsey partner, tech innovator, Per Lagerström as headline speaker 

IMT 4.0. sets stage for 2025 Edition, names former McKinsey partner, tech innovator, Per Lagerström as headline speaker 

June 23, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics