Nigeria’s push for more local participation in the oil industry has recorded another landmark with the successful bid for a Royal Dutch Shell’s prolific oil block by a consortium.
Aiteo Group, which holds 85% of the acquisition, led other members of the consortium to win the bid for OML 29 and the Nembe Creek trunkline for $2.85 billion.
OML 29 boosts of remaining reserves of about 2.2 billion barrels of oil equivalent (BOE).
Its hydrocarbon fields could deliver as much as 160,000 barrels of oil per day and 300MMscf/d at peak.
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The Nembe trunk, on the other hand, is a 60-mile pipeline which transports crude oil through the oil region to the Atlantic coast, and is also a vessel for exploration companies for transportation of their output to the international markets.
The pipeline, plagued by leaks over the years as a result of oil theft, is one of Shell’s two key pipelines in the eastern Niger Delta.
Over 20,000 associated jobs are expected to be created with the success of the transaction.
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