Shoreline acquires 45% interest in OML 30

Shoreline Natural Resources Limited has acquired a 45 per cent stake in Oil Mining Lease, OML, 30 in a deal worth about N131.75 billion ($850 million)

The acquisition, according to a statement by the company, yesterday, was after it reached a strategic agreement, weekend, with Shell Petroleum Development Company of Nigeria Limited, SPDC, Total E&P Nigeria Limited, and Nigeria Agip Oil Company.

Mr. Kola Karim, Chief Executive Officer, Shoreline, said the Nigerian National Petroleum Corporation (NNPC) through its subsidiary, Nigerian Petroleum Development Compan, NPDC, will hold the remaining 55 per cent interest, while NPDC will also be the operator of OML 30, working in partnership with Shoreline to further develop the field.
According to Karim, OML 30 is located onshore in the Delta of Nigeria, approximately 45 kilometres east of Warri, Southern Nigeria and covers an area of 1,095 square kilometres.
He added that the licence includes eight producing fields, associated infrastructure, and ownership and operation of a segment of the Trans Forcados Pipeline.

He said financing for the acquisition of the OML was provided by Standard Bank Group and JP Morgan, adding that Standard Bank will further provide the permanent long term financing for the Company.
Shoreline is a joint venture between Shoreline Power a private Nigerian energy and infrastructure company and Heritage Oil Plc, an independent upstream exploration and production company listed on both the London and Toronto stock exchanges.

Continuing, Karim stated, “This is a major development for Shoreline, taking us into the upstream oil and gas sector at such a significant time when the Nigerian government is promoting active participation from indigenous companies.
“Shoreline, along with Heritage’s strong technical team and upstream experience will become one of the leading indigenous oil producing companies in Nigeria. This will strengthen our existing network of relationships with the local communities, local government & authorities in the oil producing areas of Nigeria.

“Shoreline will inaugurate capacity developments and training programmes ensuring we add value and develop close relationships with local communities and other stakeholders in the delta region.”
Also speaking, Mr. Paul Atherton, Chief Financial Officer, Heritage Oil Plc, said, “The acquisition of OML 30 is transformational for Heritage, providing a material change in production and reserves whilst pursuing our strategy of generating shareholder value.

“As part of Heritage’s diversified portfolio of exploration, appraisal and development assets, OML 30 is expected to provide significant production and cash flow, thereby de-risking Heritage’s financial profile, and our technical expertise will provide a comparative advantage in creating additional value.

“Heritage is very excited to be participating in the development of OML 30 and entering into Nigeria. We look forward to continuing to build local relationships and partnerships with the communities in the delta region and creating a platform to build a substantial presence in Nigeria.”