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WEDNESDAY MAY20, 2015 THISDAY
SHORELINE NATURAL RESOURCES LIMITED
PARTICIPATING INTEREST IN OIL MINING LEASE (OML30)
Shoreline Natural Resources Limited (SNRL) acquired a 45% Participating Interest
in OML 30 from the Shell Petroleum Development Company in November 2012. The
Asset includes Oilfields and a 95km segment of the Trans Forcados Pipeline, which is
the major pipeline that evacuates oil from all production assets in the Western Delta
Region. The pipeline serves as an artery for the evacuation of about 400,000 bpd per
day for several companies. The Nigerian Petroleum Development Company (NPDC)
is the Operator and holds the remaining 55% of the Participating Interest in OML 30.
Evidence has shown that the performance of OML30 and other recently
divested assets managed by NPDC have been much worse than divested
assets managed by private investors. This has led to a significant shortfall to
the national revenue and made it difficult for indigenous asset owners to
meet their debt obligations to lenders.
Increased bunkering and other 3 rd party interferences within the last 12
months have led to oil and gas productions shutdowns that threaten our joint
financial existence and also the gas supply to power plants. The ongoing
NPDC Union strike that has forcibly shut down all NPDC operated assets has
only made a terrible situation worse.
The Federal Government has taken a bold action to support and promote the
Joint Operatorship Model (JOM) as a way to turn around and increase the
dwindling production in the current operatorship model.
We believe strongly that a JOM is the best way out of this worsening situation.
We see this as a win-win scenario for NPDC and indigenous private asset
owners and more importantly the Nigerian people.
The strategy of the government is to enhance the performance of all divested
assets were the NPDC has 55% Participating Interests through a JOM rather
than the outright Sale of the Assets as erroneously suggested by the Union
and some segments of the Press and this should be applauded and supported
by all concerned.
SIGNED
MANAGEMENT OF SHORELINE NATURAL RESOURCES LIMITED