THE HAGUE, Netherlands, Dec. 2 (UPI) -- The Nigerian subsidiary of Shell announced it sold stakes in oil mining leases in the Niger Delta for $488 million.
Shell said the sale was part of an effort to refocus its onshore assets in Nigeria as the government aims to put more domestic companies into the upstream oil and natural gas sector.
"As we refocus our portfolio we are strengthening our position for the future," Peter Voser, chief executive officer of Royal Dutch Shell, said in a statement. "The improvement in the security situation in the Niger Delta coupled with continued progress on key projects provides the foundation for further investment and growth."
One lease goes to Nigerian company FHN26 Ltd., an affiliate of Afren, for $98 million. The lease area is producing around 6,000 barrels of oil per day from two fields.
A second lease went to a Nigerian consortium for $390 million. The lease area is hampered by militant activity but was producing roughly 15,000 bpd earlier this year.
Shell declared force majeure in Nigeria, releasing the company from contractual obligations because of circumstances out of its control, through October. The action came after the company said spills in the area may have been the result of sabotage on a pipeline carrying crude oil through the Niger Delta.
Amnesty International and the Center for Environment, Human Rights and Development said, with Shell posting a recent $7.2 billion profit, the company needs to do more to restore the environment in oil-rich areas of Nigeria.
