Shell Affirms $2.4bn Sale Of Nigerian Onshore Oil Business

Shell Plc has agreed to sell its Nigerian onshore oil and gas subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to a consortium of five companies known as Renaissance for a total of $2.4 billion, marking the end of Shell’s nearly century-long operations in Nigeria.

Shell aims to divest the SPDC for $1.3 billion, with additional payments of up to $1.1 billion, according to the official announcement.

SPDC Limited, which operates with a 30% stake in the SPDC joint venture holding 18 onshore and shallow water mining leases, will continue to be the operator. Other joint venture partners include the Nigerian National Petroleum Corporation (55%), TotalEnergies (10%), and Italy’s Eni (5%).

Despite exiting onshore operations, Shell retains its liquefied natural gas plant and other assets in Nigeria.

The deal, announced on Tuesday, marks a major exit for Shell from a region plagued by spills, theft, and operational challenges.

It aligns with the company’s strategic shift towards deepwater and integrated gas projects in Nigeria.

Shell’s statement: “This agreement marks an important milestone for Shell in Nigeria,” says Zoe Yujnovich, integrated gas and upstream director. “It simplifies our portfolio and focuses future disciplined investment in Nigeria on our deepwater and integrated gas positions.”

The buyer, Renaissance, is a consortium comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

Actively involved in Nigeria since the 1930s, Shell has faced numerous challenges, including hundreds of oil spills resulting from theft, sabotage, and operational issues. Seeking to divest its Nigerian oil and gas business since 2021.