By Festus Akanbi
Shoreline Natural Resources Limited, a special purpose private Nigerian company formed between a subsidiary of Heritage Oil Plc and a local Nigerian partner, Shoreline Power Company Limited, has successfully completed the acquisition of a 45% participating interest in a producing oil mining lease in Nigeria (“OML 30”).
The acquisition is for a total cash consideration of $850 million, net of costs (the “Acquisition”).
The remaining 55% participating interest is held by the Nigerian Petroleum Development Company (“NPDC”), a subsidiary of Nigerian National Petroleum Corporation (“NNPC”). Completion of the Acquisition (“Completion”) was effective as of November 1, 2012. OML 30 is located onshore in the delta region, less than 50 kilometres east of Warri in Southern Nigeria. The licence covers 1,097 square kilometres and includes eight producing fields with oil and gas contained in numerous stacked reservoirs, and the acquisition assets include a 45% interest in the segment of the Trans Forcados pipeline between the Eriemu Manifold and the Forcados River Manifold.
A statement from the company at the weekend said following completion of this acquisition, the operatorship of OML 30 will transfer from Shell to NPDC. NPDC is a proven oil field operator in Nigeria and has the full confidence of Shoreline Natural Resources to work as its partner to develop OML 30 to unlock its full potential.
Standard Bank and J.P. Morgan provided instrumental support in financing the acquisition consideration for OML 30, and Standard Bank has been mandated by Shoreline Natural Resources to arrange a long-term lending facility to refinance the acquisition facility.
Managing Director of Shoreline Natural Resources Dr. Ladi Bada said the management of the company is happy o be participating in the development of OML 30 along with its partners NPDC. “It is an exciting opportunity with significant upside.