Shellآ’s problems not affecting OVLآ’s Angola deal

Vol 8, PW 5 (02 Jun 04) News in Brief

Shell might be facing problems over its inflated oil reserves but this isnt holding up OVLs deal with the Anglo-Dutch major to buy its 50% stake in Angolas block 18.

The reserve problem does not affect us, OVL tells this report. Because BP and not Shell is the operator of Block 18.

We are in advanced stages of negotiations with Shell and hope to close the deal by mid-June. The foreign ministry is actively supporting us to clinch this deal.

This report learns that so far neither BP nor the Angolan state oil company Sonangol have exercised their first right of refusal, which could block OVLs entry. On 8th April, OVL signed an agreement with Shell Development Angola B.

V to acquire Shells entire 50% stake in offshore block 18 in Angola - including the Greater Plutino project - for about $600m. Shell and operator BP each hold 50% on this 5,000-sq km block, which lies in water depths of between 1,000 and 1,600 metres.