Aiteo $2.5 billion acquisition of stake in OML 29 and NCTL

Overview:

• Aiteo Eastern E&P Company has acquired a 45% share in OML (oil mining lease) 29 and the Nembe Creek Trunk Line (NCTL) from three private shareholders for a combined cost of around $2.5 billion.
• The deal was driven by Shell's strategic review of its Nigerian onshore portfolio,which culminated in its decision to divest of certain assets, and the Nigerian government's aspirations to foster the development of the indigenous oil and gas sector.   
• OML 29 covers an area of 983 square km and includes the Nembe, Santa Barbara and Okoroba fields and related facilities; NCTL is 100 km and carries up to 600,000 barrels per day.
• Shell, Total E&P Nigeria and Nigerian Agip Oil Company sold 30%, 10% and 5% respectively in OML 29 and NCTL to Aiteo; the remaining 55% in the lease is held by Nigerian Petroleum Development Company.
• The deal was financed with a $2 billion facility from a syndicate of commercial and development banks.
• Around $800 million of the loan came from Nigerian lenders.

Ben Naylor - Regional editor