REG-Royal Dutch Shell: SPDC Completes Sale of Oil Mining Lease 24 in Nigeria <Origin Href="QuoteRef">RDSa.L</Origin>

ShellAnnouncement

24/11/2014 15:11

SPDC completes sale of oil mining lease 24 in nigeria

The Hague, 20 November 2014. The Shell Petroleum Development Company of Nigeria
Limited (SPDC), a subsidiary of Royal Dutch Shell plc (Shell), has completed
the assignment of its 30% interest in Oil Mining Lease 24 (OML24) and related
facilities in the Eastern Niger Delta to Newcross Exploration and Production
Limited (Newcross). Total cash proceeds for Shell amount to some $600 million.

This divestment is part of the strategic review of SPDC's onshore portfolio and
is in line with the Federal Government of Nigeria's aim of developing Nigerian
companies in the country's upstream oil and gas business.

Shell has been in Nigeria for more than 50 years and remains committed to
keeping a long-term presence there, both onshore and offshore. Through SPDC and
its other Nigerian companies, Shell responsibly produces the oil and gas needed
to fuel the economic and industrial growth that generates wealth for the nation
and jobs for Nigerians.

OML24 covers an area of some 430 square kilometres and includes the Awoba,
Awoba Northwest and Ekulama fields and related facilities. The divested
infrastructure includes three oil flow-stations and three gas processing
plants, in addition to various oil and gas pipelines. The divested fields
produced on average around 13,000 barrels of oil equivalent per day (100%)
during the first half of 2014.

Total E&P Nigeria Limited (10%) and Nigerian Agip Oil Company Limited (5%) have
also assigned their interests in the lease, ultimately giving Newcross a 45%
interest.

All approvals have been received from the relevant authorities of the Federal
Government of Nigeria.

Notes to editors

SPDC is the operator of a joint venture between the Nigerian National Petroleum
Corporation (55%), SPDC (30%), Total E&P Nigeria Limited (10%) and Nigerian
Agip Oil Company Limited (5%). Newcross Exploration and Production Limited is a
wholly owned Nigerian company.

                                                                               
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