Shell Plc has disclosed that it has agreed to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium comprising four Nigerian exploration and production companies and an international energy group.
News About Nigeria gathered that the deal is valued at $2.4 billion, subject to approval by the Federal Government of Nigeria and other conditions.
The multinational oil and gas company revealed the transaction’s purpose is to maintain the full range of SPDC’s operating capabilities following the change of ownership.
This includes preserving technical expertise, management systems, and processes implemented by SPDC on behalf of all companies in the SPDC Joint Venture (SPDC JV).
Shell said that SPDC’s staff will continue employment during the transition to new ownership.
According to the statement on Shell’s website, after completion of the deal, Shell will retain a role in supporting the management of SPDC Joint Venture facilities supplying a significant portion of feed gas to Nigeria LNG (NLNG) to maximise Nigeria’s value from NLNG.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said, “This agreement marks an important milestone for Shell in Nigeria, aligning with our previously announced intent to exit onshore oil production in the Niger Delta, simplifying our portfolio, and focusing future disciplined investment in Nigeria on our Deepwater and Integrated Gas positions.”
The SPDC JV is an unincorporated joint venture consisting of SPDC Ltd (30%), the government-owned Nigerian National Petroleum Corporation (NNPC) (55%), Total Exploration and Production Nigeria Ltd (10%), and Nigeria Agip Oil Company Ltd (5%).
The deal aligns with Shell’s strategy to exit onshore oil production in the Niger Delta while maintaining a positive investment outlook for Nigeria’s energy sector.
