Could this be a reason why the Shell deal is taking this long? Shoreline buys 45% of OML-30 from Shell which includes; "a 45% interest in the segment of the Trans Forcados pipeline between the Eriemu Manifold and the Forcados River Manifold (known as the OML 30 Trans Forcados Pipeline Segment)". Will Shoreline own the Forcados line or a piece (segment) of it. Does this affect our deal with Shell or not?
About Shoreline's OML 30 acquisition
OML 30 is located onshore in the delta region, covers 1,097 square kilometres and includes eight producing fields with oil and gas contained in numerous stacked reservoirs, and the acquisition Assets include a 45% interest in the segment of the Trans Forcados pipeline between the Eriemu Manifold and the Forcados River Manifold (known as the OML 30 Trans Forcados Pipeline Segment).
OML 30, Nigeria, has gross proved and probable reserves of 1,114 mmbbls of oil, estimated by independent technical consultants RPS Energy Consultants Limited ("RPS Energy") and current production of c.35,000 bopd. The economic valuation of proved plus probable reserves is estimated at between US$3,089 million and US$3,789-million.
There is the potential to both increase and stabilise production in the near term through refurbishing infrastructure and re-starting non-producing existing wells. Additionally, existing wells can be worked over to improve completions and gas lift can be installed in a number of existing wells without artificial lift. In the longer term, drilling will target additional reservoir intervals, which will provide a further increase in production levels. It is expected that OML 30 will be cash generative immediately following completion.