The Shell Petroleum Development Company of Nigeria Limited has sold 30 per cent interest in Oil Mining Lease 17 in the Eastern Niger Delta and associated infrastructure to TNOG Oil and Gas Limited for $533 million.
The oil company announced this in a statement on Friday.
According to the oil giant, the sale of the oil block to TNOG Oil followed the receipt of all approvals from the relevant authorities of the Federal Government of Nigeria.
Shell noted in the statement that TNOG Oil and Gas is a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, which are currently chaired by Tony Elumelu, a former chief executive officer and current Chairman of the United Bank for Africa (UBA).
The statement partly read: “A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area.”