Nigerian NNPC says taking over operatorship of oil blocks sold by Shell

Platts

24 May 2011

Nigerian NNPC says taking over operatorship of oil blocks sold by Shell

State-owned Nigerian National Petroleum Corporation Tuesday said it has assumed the operatorship of the Niger Delta oil blocks from which Shell had divested its interest, citing an existing agreement between the two companies.

Shell sold its 30% stake in three onshore oil blocks in 2009 and is also in the process of completing divestment in four others, in which it operated in partnership with Total, Eni and NNPC.

But NNPC said that by virtue of a clause in the joint operating agreement it entered into with Shell, it automatically assumes the operatorship of the blocks Shell had disposed off.

"Therefore prospective buyers should note that automatic operatorship does not come with the acquisition of any of these relinquished blocks," NNPC said in a statement.