About 17 Niger Delta onshore Oil Mining Leases (OMLs) belonging to the Shell Petroleum Development Company of Nigeria Limited (SPDC), will expire in the next two years, The Guardian reports.
Shell said in its yearly report and Form 20-F 2016, released at the weekend that of the Nigeria onshore proved reserves, 164 million barrels of oil equivalent (boe) are expected to be produced before the expiry of the current licenses, and 377 million boe beyond.
This means at the end of 2019, the company will either renew the expired licences or relinquish its stakes in the OMLs. The company had in the last two years engaged in divestment of assets in its onshore operations due to militancy and low oil prices.
To provide funding, Shell noted that modified carry agreements (MCAs) were in place for certain key projects and are being reimbursed. The company disclosed that its share of production, onshore and offshore, in Nigeria was 258,000 barrels per day (bpd) in 2016, which fell from 278,000 bpd in 2015.