7 December 2011, Sweetcrude, ABUJA – Royal Dutch Shell and Eni said on Wednesday they have bought the prospective Nigerian deep offshore oil block OPL 245, bringing to an end a decade of legal disputes over the huge asset.
Shell and Eni will own the block equally but the Italian firm will be the operator. The companies did not confirm how much was paid or the size of reserves but industry experts have said OPL 245 was worth over $1 billion and holds around 9 billion barrels of oil.
The prospect sits near Total’s Akpo block, which has plateau production of around 175,000 barrels of oil equivalent per day.
“The Nigerian government has awarded Agip (Eni) and ourselves OPL 245 on a 50-50 basis. Agip will operate the block,” a Shell spokesman in Nigeria told Reuters. He said the deal was completed in “recent weeks”.
The block was owned by local Nigerian firm Malabu Oil and Gas, which is owned by former Petroleum Minister Dan Etete. Shell has been tussling over the asset with Malabu for 10 years.
Shell and Eni told Reuters all money for the purchase of OPL 245 was paid to the Nigerian government and not to Malabu.
“We confirm that the federal government of Nigeria has allocated the deepwater offshore block OPL 245 jointly to Nigeria Agip Exploration (NAE) and Shell Nigeria E&P Company,” an Eni statement said.
“By the agreement reached NAE will be the operator of the block. No agreement was entered into by NAE and Malabu Oil and Gas,” the statement said. A spokesman for the Nigerian oil ministry declined to comment.
Nigeria is Africa’s largest oil producer and holds the world’s seventh-largest natural gas reserves.
5 Comments
babatruth
OUR AGENCIES CHARGED WITH THE DUTY TO FIGHT CRIME CORRUPTION IN NIGERIA ARE TOTALLY IMPOTENT, TAKE THE CASE OF THE SALE OF OPL 245, HALLIBURTON AND MANY OTHER HIGH PROFILE CASES. OUR AGENCY CAN ONLY BE EFFECTIVE IN THE FIGHT AGAINST CRIME AND CORRUPTION IF THEY ARE TRULY INDEPENDENT FROM THE EXECUTIVE BRANCHES OF GOVERNMENT; WHERE THE PRESIDENT USE THEM AS ATTACK DOGS AGAINST THEIR OPPONENTS WHILE SHIELDING THEIR FRIENDS FROM PROSECUTION. WHEN WILL NIGERIANS WAKE UP FROM THEIR SLUMBER AND REALIZE THAT THE ONLY WAY FOR THESE AGENCIES TO WORK THEY MUST BE INDEPENDENT AND FREE FROM THE CONTROL OF THE EXECUTIVE ARM OF GOVERNMENT, WHICH ALSO INCLUDES THE APPOINTMENTS OF THE HEADS OF THE THE AGENCIES. THE APPOINTMENTS SHOULD BE DONE BY POPULAR VOTE OR THROUGH THE UPPER AND LOWER HOUSE VOTE AND APPOINTMENT. THE PRESIDENCY SHOULD NOT BE ALLOWED TO APPOINT THE HEADS OF OUR CORRUPTION AGENCIES AS IF THEY WERE PART OF HIS CABINET.AND IT MUST BE MADE ILLEGAL FOR THE PRESIDENCY TO CONTROL OR INFLUENCE OUR ANTI CORRUPTION AGENCIES LIKE THE ICPC AND EFCC, THIS PRACTICES MUST STOP TO REALLY FIGHT CORRUPTION. AND NIGERIANS HAVE TO FIGHT FOR THESE CHANGES AND THEIR RIGHTS.